CAKE vs TGT: Correlation
How closely do The Cheesecake Factory Incorporated (CAKE) and Target Corporation (TGT) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and TGT?
Over the past 3 years, CAKE and TGT moved with a correlation of 0.52, which is moderate. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 583.2 %².
Within CAKE's tracked universe of 23 assets, TGT comes in at #9 by 3-year correlation. Twelve-month performance is nearly a tie, at +81.1% for CAKE and +76.2% for TGT.
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 TGT: side by side
| CAKE (The Cheesecake Factory Incorporated) | TGT (Target Corporation) | |
|---|---|---|
| 1-year return | +81.1% | +76.2% |
| 5-year return | +170.4% | -22.2% |
| Volatility (ann.) | 34.8% | 32.0% |
| Beta vs S&P 500 | 0.93 | 0.62 |
| Max drawdown (3Y) | -36.4% | -49.8% |
| Market cap | $5.5B | $75.4B |
| P/E (trailing) | 31.2 | 17.2 |
| Dividend yield | 0.99% | 2.78% |
| Sector / category | US Listed | Consumer Staples |
Year-by-year returns
| Year | CAKE | TGT |
|---|---|---|
| 2022 | -17.0% | -34.2% |
| 2023 | +14.0% | -1.4% |
| 2024 | +39.3% | -2.3% |
| 2025 | +8.6% | -24.5% |
| 2026 | +120.8% | +74.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and TGT good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAKE and TGT?
As of 2026-08-27, the correlation of weekly returns between CAKE and TGT is 0.52 over 3 years, 0.56 over 1 year and 0.45 over 5 years.
Is TGT a good diversifier for CAKE?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: CAKE correlations · TGT correlations
