CAKE vs DLTR: Correlation
The Cheesecake Factory Incorporated (CAKE) and Dollar Tree (DLTR) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and DLTR?
On 3 years of weekly data the CAKE/DLTR correlation comes out at 0.42, moderate. The relationship has been stable: the 1-year correlation (0.45) sits close to the 3-year figure. The 5-year figure is 0.39, and annualized covariance runs at 546.3 %².
By 3-year correlation, DLTR places #16 of the 23 assets tracked against CAKE. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 68.6 percentage points (+81.1% for CAKE against +12.5% for DLTR).
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 DLTR: side by side
| CAKE (The Cheesecake Factory Incorporated) | DLTR (Dollar Tree) | |
|---|---|---|
| 1-year return | +81.1% | +12.5% |
| 5-year return | +170.4% | +39.7% |
| Volatility (ann.) | 34.8% | 37.3% |
| Beta vs S&P 500 | 0.93 | 0.70 |
| Max drawdown (3Y) | -36.4% | -59.2% |
| Market cap | $5.5B | $23.8B |
| P/E (trailing) | 31.2 | 21.2 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | Consumer Staples |
Year-by-year returns
| Year | CAKE | DLTR |
|---|---|---|
| 2022 | -17.0% | +0.7% |
| 2023 | +14.0% | +0.4% |
| 2024 | +39.3% | -47.2% |
| 2025 | +8.6% | +64.1% |
| 2026 | +120.8% | +3.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and DLTR good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between CAKE and DLTR?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.45 over the last year and 0.39 over 5 years.
Is DLTR a good diversifier for CAKE?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.42 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cake-vs-dltr.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cake-vs-dltr/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAKE correlations · DLTR correlations
