Correlation Between Cheesecake Factory and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Zijin Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cheesecake Factory and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cheesecake Factory and Zijin Mining Group, you can compare the effects of market volatilities on Cheesecake Factory and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Zijin Mining.
Diversification Opportunities for Cheesecake Factory and Zijin Mining
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cheesecake and Zijin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Zijin Mining go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Zijin Mining
Given the investment horizon of 90 days Cheesecake Factory is expected to generate 4.9 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, The Cheesecake Factory is 4.31 times less risky than Zijin Mining. It trades about 0.05 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Zijin Mining Group on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Zijin Mining Group or generate 112.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.71% |
| Values | Daily Returns |
The Cheesecake Factory vs. Zijin Mining Group
Performance |
| Timeline |
| The Cheesecake Factory |
| Zijin Mining Group |
Cheesecake Factory and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheesecake Factory and Zijin Mining
The main advantage of trading using opposite Cheesecake Factory and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Cheesecake Factory vs. Highway Holdings Limited | Cheesecake Factory vs. QCR Holdings | Cheesecake Factory vs. Partner Communications | Cheesecake Factory vs. Acumen Pharmaceuticals |
| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |