Correlation Between 78454LAP5 and Cheesecake Factory
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By analyzing existing cross correlation between SM ENERGY 6625 and The Cheesecake Factory, you can compare the effects of market volatilities on 78454LAP5 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 78454LAP5 with a short position of Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of 78454LAP5 and Cheesecake Factory.
Diversification Opportunities for 78454LAP5 and Cheesecake Factory
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 78454LAP5 and Cheesecake is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SM ENERGY 6625 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 78454LAP5 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 SM ENERGY 6625 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 78454LAP5 i.e., 78454LAP5 and Cheesecake Factory go up and down completely randomly.
Pair Corralation between 78454LAP5 and Cheesecake Factory
Assuming the 90 days trading horizon SM ENERGY 6625 is expected to under-perform the Cheesecake Factory. But the bond apears to be less risky and, when comparing its historical volatility, SM ENERGY 6625 is 5.17 times less risky than Cheesecake Factory. The bond trades about 0.0 of its potential returns per unit of risk. The The Cheesecake Factory is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,183 in The Cheesecake Factory on September 14, 2024 and sell it today you would earn a total of 1,805 from holding The Cheesecake Factory or generate 56.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.4% |
| Values | Daily Returns |
SM ENERGY 6625 vs. The Cheesecake Factory
Performance |
| Timeline |
| SM ENERGY 6625 |
| The Cheesecake Factory |
78454LAP5 and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 78454LAP5 and Cheesecake Factory
The main advantage of trading using opposite 78454LAP5 and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 78454LAP5 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.| 78454LAP5 vs. GMS Inc | 78454LAP5 vs. Olympic Steel | 78454LAP5 vs. Weyco Group | 78454LAP5 vs. East Africa Metals |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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