CAKE vs LULU: Correlation
The Cheesecake Factory Incorporated (CAKE) and Lululemon Athletica (LULU) 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 LULU?
On 3 years of weekly data the CAKE/LULU correlation comes out at 0.42, moderate. The relationship has been stable: the 1-year correlation (0.44) sits close to the 3-year figure. The 5-year figure is 0.38, and annualized covariance runs at 607.2 %².
By 3-year correlation, LULU places #18 of the 23 assets tracked against CAKE. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 125.2 percentage points (+81.1% for CAKE against -44.1% for LULU).
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 LULU: side by side
| CAKE (The Cheesecake Factory Incorporated) | LULU (Lululemon Athletica) | |
|---|---|---|
| 1-year return | +81.1% | -44.1% |
| 5-year return | +170.4% | -72.3% |
| Volatility (ann.) | 34.8% | 41.8% |
| Beta vs S&P 500 | 0.93 | 0.98 |
| Max drawdown (3Y) | -36.4% | -79.4% |
| Market cap | $5.5B | $13.1B |
| P/E (trailing) | 31.2 | 9.4 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | CAKE | LULU |
|---|---|---|
| 2022 | -17.0% | -18.2% |
| 2023 | +14.0% | +59.6% |
| 2024 | +39.3% | -25.2% |
| 2025 | +8.6% | -45.7% |
| 2026 | +120.8% | -44.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and LULU good diversifiers for each other?
Reasonably. At 0.42, CAKE and LULU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CAKE and LULU?
The CAKE/LULU correlation stands at 0.42 on a 3-year window (1 year: 0.44, 5 years: 0.38), computed from weekly returns as of 2026-08-27.
Is LULU a good diversifier for CAKE?
Reasonably. At 0.42, CAKE and LULU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cake-vs-lulu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cake-vs-lulu/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CAKE correlations · LULU correlations
