CAKE vs DXCM: Correlation
Measured on weekly returns over the past three years, The Cheesecake Factory Incorporated (CAKE) and Dexcom (DXCM) carry a correlation of 0.42, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and DXCM?
On 3 years of weekly data the CAKE/DXCM correlation comes out at 0.42, moderate. The link has tightened recently: the 1-year correlation (0.59) runs above the 3-year figure (0.42). The 5-year figure is 0.35, and annualized covariance runs at 682.5 %².
Within CAKE's tracked universe of 23 assets, DXCM comes in at #17 by 3-year correlation. The last year tells two different stories: CAKE led by 64.2 percentage points, +81.1% for CAKE against +16.9% for DXCM.
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 DXCM: side by side
| CAKE (The Cheesecake Factory Incorporated) | DXCM (Dexcom) | |
|---|---|---|
| 1-year return | +81.1% | +16.9% |
| 5-year return | +170.4% | -31.5% |
| Volatility (ann.) | 34.8% | 46.7% |
| Beta vs S&P 500 | 0.93 | 1.02 |
| Max drawdown (3Y) | -36.4% | -61.0% |
| Market cap | $5.5B | $33.7B |
| P/E (trailing) | 31.2 | 35.2 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | Health Care |
Year-by-year returns
| Year | CAKE | DXCM |
|---|---|---|
| 2022 | -17.0% | -15.6% |
| 2023 | +14.0% | +9.6% |
| 2024 | +39.3% | -37.3% |
| 2025 | +8.6% | -14.7% |
| 2026 | +120.8% | +34.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and DXCM 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 DXCM?
The CAKE/DXCM correlation stands at 0.42 on a 3-year window (1 year: 0.59, 5 years: 0.35), computed from weekly returns as of 2026-08-27.
Is DXCM 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?
A reading of 0.42 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cake-vs-dxcm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cake-vs-dxcm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CAKE correlations · DXCM correlations
