Correlation Between Cheesecake Factory and SOUTHERN
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By analyzing existing cross correlation between The Cheesecake Factory and SOUTHERN PER CORP, you can compare the effects of market volatilities on Cheesecake Factory and SOUTHERN and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cheesecake Factory with a short position of SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and SOUTHERN.
Diversification Opportunities for Cheesecake Factory and SOUTHERN
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and SOUTHERN is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and SOUTHERN PER CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN PER P and Cheesecake Factory is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Cheesecake Factory are associated (or correlated) with SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN PER P has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and SOUTHERN go up and down completely randomly.
Pair Corralation between Cheesecake Factory and SOUTHERN
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 1.6 times more return on investment than SOUTHERN. However, Cheesecake Factory is 1.6 times more volatile than SOUTHERN PER CORP. It trades about 0.22 of its potential returns per unit of risk. SOUTHERN PER CORP is currently generating about 0.05 per unit of risk. If you would invest 4,668 in The Cheesecake Factory on September 12, 2024 and sell it today you would earn a total of 410.00 from holding The Cheesecake Factory or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cheesecake Factory vs. SOUTHERN PER CORP
Performance |
| Timeline |
| The Cheesecake Factory |
| SOUTHERN PER P |
Cheesecake Factory and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and SOUTHERN
The main advantage of trading using opposite Cheesecake Factory and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, SOUTHERN can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
| SOUTHERN vs. AEP TEX INC | SOUTHERN vs. US BANK NATIONAL | SOUTHERN vs. Applied Blockchain | SOUTHERN vs. BigBearai Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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