Correlation Between Cheesecake Factory and Barnes Noble
Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Barnes Noble 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 Barnes Noble 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 Barnes Noble, you can compare the effects of market volatilities on Cheesecake Factory and Barnes Noble 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 Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Barnes Noble.
Diversification Opportunities for Cheesecake Factory and Barnes Noble
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheesecake and Barnes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Barnes Noble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Noble 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 Barnes Noble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Noble has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Barnes Noble go up and down completely randomly.
Pair Corralation between Cheesecake Factory and Barnes Noble
If you would invest (100.00) in Barnes Noble on February 1, 2024 and sell it today you would earn a total of 100.00 from holding Barnes Noble or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
The Cheesecake Factory vs. Barnes Noble
Performance |
Timeline |
The Cheesecake Factory |
Barnes Noble |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cheesecake Factory and Barnes Noble Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheesecake Factory and Barnes Noble
The main advantage of trading using opposite Cheesecake Factory and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Barnes Noble 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 Barnes Noble will offset losses from the drop in Barnes Noble's long position.Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Chuys Holdings |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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