Correlation Between 51Talk Online and Cheesecake Factory
Can any of the company-specific risk be diversified away by investing in both 51Talk Online and Cheesecake Factory 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 51Talk Online and Cheesecake Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 51Talk Online Education and The Cheesecake Factory, you can compare the effects of market volatilities on 51Talk Online and Cheesecake Factory 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 51Talk Online with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and Cheesecake Factory.
Diversification Opportunities for 51Talk Online and Cheesecake Factory
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 51Talk and Cheesecake is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education and The Cheesecake Factory in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Cheesecake Factory and 51Talk Online 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 51Talk Online Education are associated (or correlated) with Cheesecake Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Cheesecake Factory has no effect on the direction of 51Talk Online i.e., 51Talk Online and Cheesecake Factory go up and down completely randomly.
Pair Corralation between 51Talk Online and Cheesecake Factory
Considering the 90-day investment horizon 51Talk Online Education is expected to under-perform the Cheesecake Factory. In addition to that, 51Talk Online is 1.0 times more volatile than The Cheesecake Factory. It trades about -0.12 of its total potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.26 per unit of volatility. If you would invest 4,262 in The Cheesecake Factory on August 30, 2024 and sell it today you would earn a total of 712.00 from holding The Cheesecake Factory or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
51Talk Online Education vs. The Cheesecake Factory
Performance |
| Timeline |
| 51Talk Online Education |
| The Cheesecake Factory |
51Talk Online and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 51Talk Online and Cheesecake Factory
The main advantage of trading using opposite 51Talk Online and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online position performs unexpectedly, Cheesecake Factory 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 Cheesecake Factory will offset losses from the drop in Cheesecake Factory's long position.| 51Talk Online vs. Laureate Education | 51Talk Online vs. Strategic Education | 51Talk Online vs. Grand Canyon Education | 51Talk Online vs. American Public Education |
| Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |