Correlation Between Presidio Property and Cheesecake Factory
Can any of the company-specific risk be diversified away by investing in both Presidio Property 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 Presidio Property and Cheesecake Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and The Cheesecake Factory, you can compare the effects of market volatilities on Presidio Property 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 Presidio Property with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and Cheesecake Factory.
Diversification Opportunities for Presidio Property and Cheesecake Factory
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Presidio and Cheesecake is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust 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 Presidio Property 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 Presidio Property Trust 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 Presidio Property i.e., Presidio Property and Cheesecake Factory go up and down completely randomly.
Pair Corralation between Presidio Property and Cheesecake Factory
Given the investment horizon of 90 days Presidio Property Trust is expected to under-perform the Cheesecake Factory. In addition to that, Presidio Property is 2.2 times more volatile than The Cheesecake Factory. It trades about 0.0 of its total potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.09 per unit of volatility. If you would invest 3,210 in The Cheesecake Factory on August 29, 2024 and sell it today you would earn a total of 1,675 from holding The Cheesecake Factory or generate 52.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. The Cheesecake Factory
Performance |
| Timeline |
| Presidio Property Trust |
| The Cheesecake Factory |
Presidio Property and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and Cheesecake Factory
The main advantage of trading using opposite Presidio Property and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property 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.| Presidio Property vs. VICI Properties | Presidio Property vs. Essential Properties Realty | Presidio Property vs. Empire State Realty | Presidio Property vs. American Assets Trust |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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