CAKE vs RRGB: Correlation
How closely do The Cheesecake Factory Incorporated (CAKE) and Red Robin Gourmet Burgers, Inc. (RRGB) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and RRGB?
Across a 3-year window, the weekly returns of CAKE and RRGB correlate at 0.49, moderate. The link has tightened recently: the 1-year correlation (0.61) runs above the 3-year figure (0.49). Stretching to 5 years gives 0.53, with an annualized covariance of 1458.5 %².
By 3-year correlation, RRGB places #11 of the 23 assets tracked against CAKE. Correlation aside, the last 12 months split them widely, with CAKE ahead by 35.7 points (+81.1% versus +45.4%). One caveat on sizing: RRGB is 2.5 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 RRGB: side by side
| CAKE (The Cheesecake Factory Incorporated) | RRGB (Red Robin Gourmet Burgers, Inc.) | |
|---|---|---|
| 1-year return | +81.1% | +45.4% |
| 5-year return | +170.4% | -61.2% |
| Volatility (ann.) | 34.8% | 86.0% |
| Beta vs S&P 500 | 0.93 | 1.99 |
| Max drawdown (3Y) | -36.4% | -79.7% |
| Market cap | $5.5B | $0.2B |
| P/E (trailing) | 31.2 | – |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | RRGB |
|---|---|---|
| 2022 | -17.0% | -66.2% |
| 2023 | +14.0% | +123.5% |
| 2024 | +39.3% | -56.0% |
| 2025 | +8.6% | -26.2% |
| 2026 | +120.8% | +132.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and RRGB good diversifiers for each other?
Reasonably. At 0.49, CAKE and RRGB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CAKE and RRGB?
As of 2026-08-27, the correlation of weekly returns between CAKE and RRGB is 0.49 over 3 years, 0.61 over 1 year and 0.53 over 5 years.
Is RRGB a good diversifier for CAKE?
Reasonably. At 0.49, CAKE and RRGB keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
On the −1 to +1 scale, 0.49 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-rrgb.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cake-vs-rrgb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CAKE correlations · RRGB correlations
