Correlation Between Cheesecake Factory and Conifer Holdings,

Can any of the company-specific risk be diversified away by investing in both Cheesecake Factory and Conifer Holdings, 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 Conifer Holdings, 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 Conifer Holdings, 975, you can compare the effects of market volatilities on Cheesecake Factory and Conifer Holdings, 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 Conifer Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheesecake Factory and Conifer Holdings,.

Diversification Opportunities for Cheesecake Factory and Conifer Holdings,

0.57

Correlation Coefficient

Cheesecake Factory  Conifer Holdings,

Very weak diversification

The 3 months correlation between Cheesecake and Conifer is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding The Cheesecake Factory and Conifer Holdings, 975 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holdings, 975 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 Conifer Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holdings, 975 has no effect on the direction of Cheesecake Factory i.e., Cheesecake Factory and Conifer Holdings, go up and down completely randomly.

Pair Corralation between Cheesecake Factory and Conifer Holdings,

Given the investment horizon of 90 days Cheesecake Factory is expected to generate 1.01 times less return on investment than Conifer Holdings,. But when comparing it to its historical volatility, The Cheesecake Factory is 1.15 times less risky than Conifer Holdings,. It trades about 0.03 of its potential returns per unit of risk. Conifer Holdings, 975 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,095  in Conifer Holdings, 975 on December 21, 2024 and sell it today you would earn a total of  44.00  from holding Conifer Holdings, 975 or generate 2.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	78.33%
Values	Daily Returns

The Cheesecake Factory  vs.  Conifer Holdings, 975

The Cheesecake Factory

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Cheesecake Factory are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking signals, Cheesecake Factory is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Conifer Holdings, 975

Risk-Adjusted Performance

Weak

Over the last 90 days Conifer Holdings, 975 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Conifer Holdings, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cheesecake Factory and Conifer Holdings,

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

The idea behind The Cheesecake Factory and Conifer Holdings, 975 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.