CAKE vs SHAK: Correlation
The Cheesecake Factory Incorporated (CAKE) and Shake Shack, Inc. (SHAK) show a moderate relationship: their 3-year correlation of weekly returns is 0.47.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and SHAK?
On 3 years of weekly data the CAKE/SHAK correlation comes out at 0.47, moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. The 5-year figure is 0.56, and annualized covariance runs at 835.4 %².
By 3-year correlation, SHAK places #13 of the 23 assets tracked against CAKE. The last year tells two different stories: CAKE led by 115.0 percentage points, +81.1% for CAKE against -33.9% for SHAK.
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 SHAK: side by side
| CAKE (The Cheesecake Factory Incorporated) | SHAK (Shake Shack, Inc.) | |
|---|---|---|
| 1-year return | +81.1% | -33.9% |
| 5-year return | +170.4% | -18.1% |
| Volatility (ann.) | 34.8% | 51.5% |
| Beta vs S&P 500 | 0.93 | 1.42 |
| Max drawdown (3Y) | -36.4% | -63.1% |
| Market cap | $5.5B | $3.0B |
| P/E (trailing) | 31.2 | 76.7 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | SHAK |
|---|---|---|
| 2022 | -17.0% | -42.4% |
| 2023 | +14.0% | +78.5% |
| 2024 | +39.3% | +75.1% |
| 2025 | +8.6% | -37.5% |
| 2026 | +120.8% | -13.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and SHAK good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between CAKE and SHAK?
As of 2026-08-27, the correlation of weekly returns between CAKE and SHAK is 0.47 over 3 years, 0.55 over 1 year and 0.56 over 5 years.
Is SHAK a good diversifier for CAKE?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.47 mean?
A reading of 0.47 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
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Related comparisons
Hubs: CAKE correlations · SHAK correlations
