Correlation Between 22003BAP1 and Cheesecake Factory
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By analyzing existing cross correlation between OFC 29 01 DEC 33 and The Cheesecake Factory, you can compare the effects of market volatilities on 22003BAP1 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 22003BAP1 with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of 22003BAP1 and Cheesecake Factory.
Diversification Opportunities for 22003BAP1 and Cheesecake Factory
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 22003BAP1 and Cheesecake is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding OFC 29 01 DEC 33 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 22003BAP1 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 OFC 29 01 DEC 33 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 22003BAP1 i.e., 22003BAP1 and Cheesecake Factory go up and down completely randomly.
Pair Corralation between 22003BAP1 and Cheesecake Factory
Assuming the 90 days trading horizon 22003BAP1 is expected to generate 2.92 times less return on investment than Cheesecake Factory. But when comparing it to its historical volatility, OFC 29 01 DEC 33 is 2.44 times less risky than Cheesecake Factory. It trades about 0.04 of its potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,237 in The Cheesecake Factory on September 4, 2024 and sell it today you would earn a total of 1,718 from holding The Cheesecake Factory or generate 53.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.91% |
| Values | Daily Returns |
OFC 29 01 DEC 33 vs. The Cheesecake Factory
Performance |
| Timeline |
| OFC 29 01 |
| The Cheesecake Factory |
22003BAP1 and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 22003BAP1 and Cheesecake Factory
The main advantage of trading using opposite 22003BAP1 and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 22003BAP1 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.| 22003BAP1 vs. Bridgford Foods | 22003BAP1 vs. Olympic Steel | 22003BAP1 vs. Harmony Gold Mining | 22003BAP1 vs. Parker Hannifin |
| Cheesecake Factory vs. Hyatt Hotels | Cheesecake Factory vs. Smart Share Global | Cheesecake Factory vs. Sweetgreen | Cheesecake Factory vs. Wyndham Hotels Resorts |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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