Correlation Between Cheesecake Factory and Pet Acquisition
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Pet Acquisition 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 Cheesecake Factory and Pet Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cheesecake Factory and Pet Acquisition LLC, you can compare the effects of market volatilities on Cheesecake Factory and Pet Acquisition 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 Cheesecake Factory with a short position of Pet Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Pet Acquisition.
Diversification Opportunities for Cheesecake Factory and Pet Acquisition
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheesecake and Pet is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Pet Acquisition LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pet Acquisition LLC and Cheesecake Factory 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 The Cheesecake Factory are associated (or correlated) with Pet Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pet Acquisition LLC has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Pet Acquisition go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Pet Acquisition
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 0.62 times more return on investment than Pet Acquisition. However, The Cheesecake Factory is 1.6 times less risky than Pet Acquisition. It trades about 0.02 of its potential returns per unit of risk. Pet Acquisition LLC is currently generating about -0.09 per unit of risk. If you would invest 3,304 in The Cheesecake Factory on December 29, 2023 and sell it today you would earn a total of 333.00 from holding The Cheesecake Factory or generate 10.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Cheesecake Factory vs. Pet Acquisition LLC
Performance |
Timeline |
The Cheesecake Factory |
Pet Acquisition LLC |
Cheesecake Factory and Pet Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheesecake Factory and Pet Acquisition
The main advantage of trading using opposite Cheesecake Factory and Pet Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Pet Acquisition 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 Pet Acquisition will offset losses from the drop in Pet Acquisition's long position.Cheesecake Factory vs. Hyatt Hotels | Cheesecake Factory vs. Monarch Casino Resort | Cheesecake Factory vs. Biglari Holdings | Cheesecake Factory vs. Smart Share Global |
Pet Acquisition vs. Macys Inc | Pet Acquisition vs. Wayfair | Pet Acquisition vs. 1StdibsCom | Pet Acquisition vs. AutoNation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |