CAKE vs SPY: Correlation
The Cheesecake Factory Incorporated (CAKE) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.39.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and SPY?
Over the past 3 years, CAKE and SPY moved with a correlation of 0.39, which is moderate. Little has changed lately, as the 1-year reading of 0.37 lands near the 3-year figure. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 194.5 %².
Among the 23 assets we track against CAKE, SPY sits near the bottom by co-movement, at rank #19. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 60.5 percentage points (+81.1% for CAKE against +20.6% for SPY). One caveat on sizing: CAKE is 2.4 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 SPY: side by side
| CAKE (The Cheesecake Factory Incorporated) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +81.1% | +20.6% |
| 5-year return | +170.4% | +82.4% |
| Volatility (ann.) | 34.8% | 14.5% |
| Beta vs S&P 500 | 0.93 | 1.00 |
| Max drawdown (3Y) | -36.4% | -18.8% |
| Market cap | $5.5B | – |
| P/E (trailing) | 31.2 | – |
| Dividend yield | 0.99% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | CAKE | SPY |
|---|---|---|
| 2022 | -17.0% | -18.2% |
| 2023 | +14.0% | +26.2% |
| 2024 | +39.3% | +24.9% |
| 2025 | +8.6% | +17.7% |
| 2026 | +120.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and SPY good diversifiers for each other?
A fair diversifier. At 0.39, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between CAKE and SPY?
Using weekly returns as of 2026-08-27: 0.39 over 3 years, with 0.37 over the last year and 0.49 over 5 years.
Is SPY a good diversifier for CAKE?
A fair diversifier. At 0.39, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.39 mean?
A reading of 0.39 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: CAKE correlations · SPY correlations
