Correlation Between Femasys and Cheesecake Factory
Can any of the company-specific risk be diversified away by investing in both Femasys 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 Femasys and Cheesecake Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and The Cheesecake Factory, you can compare the effects of market volatilities on Femasys 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 Femasys with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Cheesecake Factory.
Diversification Opportunities for Femasys and Cheesecake Factory
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Femasys and Cheesecake is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Femasys 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 Femasys 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 Femasys 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 Femasys i.e., Femasys and Cheesecake Factory go up and down completely randomly.
Pair Corralation between Femasys and Cheesecake Factory
Given the investment horizon of 90 days Femasys is expected to under-perform the Cheesecake Factory. In addition to that, Femasys is 2.34 times more volatile than The Cheesecake Factory. It trades about -0.13 of its total potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.22 per unit of volatility. If you would invest 4,596 in The Cheesecake Factory on September 1, 2024 and sell it today you would earn a total of 468.00 from holding The Cheesecake Factory or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. The Cheesecake Factory
Performance |
| Timeline |
| Femasys |
| The Cheesecake Factory |
Femasys and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Cheesecake Factory
The main advantage of trading using opposite Femasys and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys 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.| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
| Cheesecake Factory vs. The Wendys Co | Cheesecake Factory vs. Shake Shack | Cheesecake Factory vs. Papa Johns International | Cheesecake Factory vs. Darden Restaurants |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |