Correlation Between Cheesecake Factory and LOCKHEED
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By analyzing existing cross correlation between The Cheesecake Factory and LOCKHEED MARTIN P, you can compare the effects of market volatilities on Cheesecake Factory and LOCKHEED 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 LOCKHEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and LOCKHEED.
Diversification Opportunities for Cheesecake Factory and LOCKHEED
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cheesecake and LOCKHEED is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and LOCKHEED MARTIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOCKHEED MARTIN P 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 LOCKHEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOCKHEED MARTIN P has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and LOCKHEED go up and down completely randomly.
Pair Corralation between Cheesecake Factory and LOCKHEED
Given the investment horizon of 90 days The Cheesecake Factory is expected to generate 2.93 times more return on investment than LOCKHEED. However, Cheesecake Factory is 2.93 times more volatile than LOCKHEED MARTIN P. It trades about 0.2 of its potential returns per unit of risk. LOCKHEED MARTIN P is currently generating about -0.1 per unit of risk. If you would invest 3,737 in The Cheesecake Factory on September 16, 2024 and sell it today you would earn a total of 1,250 from holding The Cheesecake Factory or generate 33.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.38% |
Values | Daily Returns |
The Cheesecake Factory vs. LOCKHEED MARTIN P
Performance |
Timeline |
The Cheesecake Factory |
LOCKHEED MARTIN P |
Cheesecake Factory and LOCKHEED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheesecake Factory and LOCKHEED
The main advantage of trading using opposite Cheesecake Factory and LOCKHEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheesecake Factory position performs unexpectedly, LOCKHEED 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 LOCKHEED will offset losses from the drop in LOCKHEED's long position.Cheesecake Factory vs. Dine Brands Global | Cheesecake Factory vs. Bloomin Brands | Cheesecake Factory vs. BJs Restaurants | Cheesecake Factory vs. Brinker International |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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