Correlation Between Cleantech Power and Cheesecake Factory
Can any of the company-specific risk be diversified away by investing in both Cleantech Power 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 Cleantech Power and Cheesecake Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleantech Power Corp and The Cheesecake Factory, you can compare the effects of market volatilities on Cleantech Power 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 Cleantech Power with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Cheesecake Factory.
Diversification Opportunities for Cleantech Power and Cheesecake Factory
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Cheesecake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp 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 Cleantech Power 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 Cleantech Power Corp 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 Cleantech Power i.e., Cleantech Power and Cheesecake Factory go up and down completely randomly.
Pair Corralation between Cleantech Power and Cheesecake Factory
If you would invest 3,742 in The Cheesecake Factory on October 25, 2024 and sell it today you would earn a total of 1,363 from holding The Cheesecake Factory or generate 36.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Cleantech Power Corp vs. The Cheesecake Factory
Performance |
| Timeline |
| Cleantech Power Corp |
| The Cheesecake Factory |
Cleantech Power and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Cheesecake Factory
The main advantage of trading using opposite Cleantech Power and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power 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.| Cleantech Power vs. NL Industries | Cleantech Power vs. Western Digital | Cleantech Power vs. Park Electrochemical | Cleantech Power vs. CVR Partners LP |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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