Correlation Between Cheesecake Factory and Kalera Public

Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Kalera Public 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 Kalera Public 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 Kalera Public Limited, you can compare the effects of market volatilities on Cheesecake Factory and Kalera Public 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 Kalera Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Kalera Public.

Diversification Opportunities for Cheesecake Factory and Kalera Public

0.0

Correlation Coefficient

Cheesecake Factory  Kalera Public

Pay attention - limited upside

The 3 months correlation between Cheesecake and Kalera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Kalera Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalera Public Limited 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 Kalera Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalera Public Limited has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Kalera Public go up and down completely randomly.

Pair Corralation between Cheesecake Factory and Kalera Public

If you would invest  3,649  in The Cheesecake Factory on September 12, 2024 and sell it today you would earn a total of  1,360  from holding The Cheesecake Factory or generate 37.27% 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.  Kalera Public Limited

The Cheesecake Factory

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Cheesecake Factory are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating forward-looking signals, Cheesecake Factory exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kalera Public Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kalera Public Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Kalera Public is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cheesecake Factory and Kalera Public

The main advantage of trading using opposite Cheesecake Factory and Kalera Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, Kalera Public 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 Kalera Public will offset losses from the drop in Kalera Public's long position.

The idea behind The Cheesecake Factory and Kalera Public Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.