CAKE vs PLAY: Correlation
Measured on weekly returns over the past three years, The Cheesecake Factory Incorporated (CAKE) and Dave & Buster's Entertainment, Inc. (PLAY) carry a correlation of 0.54, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and PLAY?
On 3 years of weekly data the CAKE/PLAY correlation comes out at 0.54, moderate. Little has changed lately, as the 1-year reading of 0.58 lands near the 3-year figure. The 5-year figure is 0.57, and annualized covariance runs at 1203.2 %².
By 3-year correlation, PLAY places #7 of the 23 assets tracked against CAKE. The last year tells two different stories: CAKE led by 145.0 percentage points, +81.1% for CAKE against -63.9% for PLAY. Note the risk asymmetry: PLAY runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 PLAY: side by side
| CAKE (The Cheesecake Factory Incorporated) | PLAY (Dave & Buster's Entertainment, Inc.) | |
|---|---|---|
| 1-year return | +81.1% | -63.9% |
| 5-year return | +170.4% | -74.8% |
| Volatility (ann.) | 34.8% | 63.8% |
| Beta vs S&P 500 | 0.93 | 1.25 |
| Max drawdown (3Y) | -36.4% | -86.6% |
| Market cap | $5.5B | $0.3B |
| P/E (trailing) | 31.2 | – |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | PLAY |
|---|---|---|
| 2022 | -17.0% | -7.7% |
| 2023 | +14.0% | +51.9% |
| 2024 | +39.3% | -45.8% |
| 2025 | +8.6% | -44.5% |
| 2026 | +120.8% | -43.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and PLAY good diversifiers for each other?
Only partially. A correlation of 0.54 means CAKE and PLAY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CAKE and PLAY?
As of 2026-08-27, the correlation of weekly returns between CAKE and PLAY is 0.54 over 3 years, 0.58 over 1 year and 0.57 over 5 years.
Is PLAY a good diversifier for CAKE?
Only partially. A correlation of 0.54 means CAKE and PLAY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.54 mean?
On the −1 to +1 scale, 0.54 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-play.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cake-vs-play/)
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Related comparisons
Hubs: CAKE correlations · PLAY correlations
