CAKE vs TXRH: Correlation
How closely do The Cheesecake Factory Incorporated (CAKE) and Texas Roadhouse, Inc. (TXRH) 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 TXRH?
On 3 years of weekly data the CAKE/TXRH correlation comes out at 0.52, moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. The 5-year figure is 0.63, and annualized covariance runs at 459.4 %².
Within CAKE's tracked universe of 23 assets, TXRH comes in at #10 by 3-year correlation. Correlation aside, the last 12 months split them widely, with CAKE ahead by 64.7 points (+81.1% versus +16.4%).
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 TXRH: side by side
| CAKE (The Cheesecake Factory Incorporated) | TXRH (Texas Roadhouse, Inc.) | |
|---|---|---|
| 1-year return | +81.1% | +16.4% |
| 5-year return | +170.4% | +134.1% |
| Volatility (ann.) | 34.8% | 25.6% |
| Beta vs S&P 500 | 0.93 | 0.52 |
| Max drawdown (3Y) | -36.4% | -24.8% |
| Market cap | $5.5B | $13.1B |
| P/E (trailing) | 31.2 | 32.6 |
| Dividend yield | 0.99% | 1.40% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | TXRH |
|---|---|---|
| 2022 | -17.0% | +4.2% |
| 2023 | +14.0% | +37.1% |
| 2024 | +39.3% | +49.8% |
| 2025 | +8.6% | -6.6% |
| 2026 | +120.8% | +21.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and TXRH good diversifiers for each other?
Only partially. A correlation of 0.52 means CAKE and TXRH 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 TXRH?
As of 2026-08-27, the correlation of weekly returns between CAKE and TXRH is 0.52 over 3 years, 0.52 over 1 year and 0.63 over 5 years.
Is TXRH a good diversifier for CAKE?
Only partially. A correlation of 0.52 means CAKE and TXRH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.52 mean?
A reading of 0.52 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
$ curl https://www.pairbook.io/api/v1/pairs/cake-vs-txrh.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cake-vs-txrh/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CAKE correlations · TXRH correlations
