CAKE vs FNGD: Correlation
Measured on weekly returns over the past three years, The Cheesecake Factory Incorporated (CAKE) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) carry a correlation of -0.22, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and FNGD?
Over the past 3 years, CAKE and FNGD moved with a correlation of -0.22, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.21) sits close to the 3-year figure. Over 5 years the correlation is -0.32, and the annualized covariance of weekly returns is -586.4 %².
Among the 23 assets we track against CAKE, FNGD sits near the bottom by co-movement, at rank #21. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 136.8 percentage points (+81.1% for CAKE against -55.7% for FNGD). One caveat on sizing: FNGD is 2.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 FNGD: side by side
| CAKE (The Cheesecake Factory Incorporated) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +81.1% | -55.7% |
| 5-year return | +170.4% | -99.4% |
| Volatility (ann.) | 34.8% | 75.7% |
| Beta vs S&P 500 | 0.93 | -4.54 |
| Max drawdown (3Y) | -36.4% | -97.6% |
| Market cap | $5.5B | – |
| P/E (trailing) | 31.2 | 20.6 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | FNGD |
|---|---|---|
| 2022 | -17.0% | +52.2% |
| 2023 | +14.0% | -90.1% |
| 2024 | +39.3% | -76.6% |
| 2025 | +8.6% | -61.4% |
| 2026 | +120.8% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and FNGD good diversifiers for each other?
Yes. With a correlation of -0.22, CAKE and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between CAKE and FNGD?
Using weekly returns as of 2026-08-27: -0.22 over 3 years, with -0.21 over the last year and -0.32 over 5 years.
Is FNGD a good diversifier for CAKE?
Yes. With a correlation of -0.22, CAKE and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.22 mean?
A reading of -0.22 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-fngd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cake-vs-fngd/)
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Related comparisons
Hubs: CAKE correlations · FNGD correlations
