Correlation Between CONSOLIDATED and Cheesecake Factory
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By analyzing existing cross correlation between CONSOLIDATED EDISON N and The Cheesecake Factory, you can compare the effects of market volatilities on CONSOLIDATED 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 CONSOLIDATED with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED and Cheesecake Factory.
Diversification Opportunities for CONSOLIDATED and Cheesecake Factory
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CONSOLIDATED and Cheesecake is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED EDISON N 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 CONSOLIDATED 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 CONSOLIDATED EDISON N 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 CONSOLIDATED i.e., CONSOLIDATED and Cheesecake Factory go up and down completely randomly.
Pair Corralation between CONSOLIDATED and Cheesecake Factory
Assuming the 90 days trading horizon CONSOLIDATED EDISON N is expected to generate 38.79 times more return on investment than Cheesecake Factory. However, CONSOLIDATED is 38.79 times more volatile than The Cheesecake Factory. It trades about 0.07 of its potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.05 per unit of risk. If you would invest 11,347 in CONSOLIDATED EDISON N on September 3, 2024 and sell it today you would earn a total of 101.00 from holding CONSOLIDATED EDISON N or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.38% |
| Values | Daily Returns |
CONSOLIDATED EDISON N vs. The Cheesecake Factory
Performance |
| Timeline |
| CONSOLIDATED EDISON |
| The Cheesecake Factory |
CONSOLIDATED and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED and Cheesecake Factory
The main advantage of trading using opposite CONSOLIDATED and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED 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.| CONSOLIDATED vs. The Cheesecake Factory | CONSOLIDATED vs. Univest Pennsylvania | CONSOLIDATED vs. Kura Sushi USA | CONSOLIDATED vs. Dominos Pizza |
| Cheesecake Factory vs. Highway Holdings Limited | Cheesecake Factory vs. QCR Holdings | Cheesecake Factory vs. Partner Communications | Cheesecake Factory vs. Acumen Pharmaceuticals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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