CAKE vs CMG: Correlation
How closely do The Cheesecake Factory Incorporated (CAKE) and Chipotle Mexican Grill (CMG) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and CMG?
Over the past 3 years, CAKE and CMG moved with a correlation of 0.44, which is moderate. The past 12 months show a tighter link (0.66) than the 3-year average (0.44). Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 539.6 %².
Within CAKE's tracked universe of 23 assets, CMG comes in at #14 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 93.8 percentage points (+81.1% for CAKE against -12.7% for CMG).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CAKE vs CMG: side by side
| CAKE (The Cheesecake Factory Incorporated) | CMG (Chipotle Mexican Grill) | |
|---|---|---|
| 1-year return | +81.1% | -12.7% |
| 5-year return | +170.4% | -2.9% |
| Volatility (ann.) | 34.8% | 35.7% |
| Beta vs S&P 500 | 0.93 | 0.89 |
| Max drawdown (3Y) | -36.4% | -58.9% |
| Market cap | $5.5B | $47.1B |
| P/E (trailing) | 31.2 | 34.5 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | CAKE | CMG |
|---|---|---|
| 2022 | -17.0% | -20.6% |
| 2023 | +14.0% | +64.8% |
| 2024 | +39.3% | +31.8% |
| 2025 | +8.6% | -38.6% |
| 2026 | +120.8% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and CMG good diversifiers for each other?
Reasonably. At 0.44, CAKE and CMG keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CAKE and CMG?
As of 2026-08-27, the correlation of weekly returns between CAKE and CMG is 0.44 over 3 years, 0.66 over 1 year and 0.45 over 5 years.
Is CMG a good diversifier for CAKE?
Reasonably. At 0.44, CAKE and CMG keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: CAKE correlations · CMG correlations
