Correlation Between QTELQD and Cheesecake Factory
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By analyzing existing cross correlation between QTELQD 2625 08 APR 31 and The Cheesecake Factory, you can compare the effects of market volatilities on QTELQD 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 QTELQD with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of QTELQD and Cheesecake Factory.
Diversification Opportunities for QTELQD and Cheesecake Factory
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between QTELQD and Cheesecake is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding QTELQD 2625 08 APR 31 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 QTELQD 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 QTELQD 2625 08 APR 31 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 QTELQD i.e., QTELQD and Cheesecake Factory go up and down completely randomly.
Pair Corralation between QTELQD and Cheesecake Factory
Assuming the 90 days trading horizon QTELQD is expected to generate 1.23 times less return on investment than Cheesecake Factory. But when comparing it to its historical volatility, QTELQD 2625 08 APR 31 is 1.02 times less risky than Cheesecake Factory. It trades about 0.18 of its potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,668 in The Cheesecake Factory on September 12, 2024 and sell it today you would earn a total of 410.00 from holding The Cheesecake Factory or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
QTELQD 2625 08 APR 31 vs. The Cheesecake Factory
Performance |
| Timeline |
| QTELQD 2625 08 |
| The Cheesecake Factory |
QTELQD and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QTELQD and Cheesecake Factory
The main advantage of trading using opposite QTELQD and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QTELQD 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.| QTELQD vs. The Cheesecake Factory | QTELQD vs. Yum Brands | QTELQD vs. FactSet Research Systems | QTELQD vs. Ark Restaurants Corp |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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