Correlation Between Citigroup and Chipotle Mexican
Can any of the company-specific risk be diversified away by investing in both Citigroup and Chipotle Mexican at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Chipotle Mexican into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Chipotle Mexican Grill, you can compare the effects of market volatilities on Citigroup and Chipotle Mexican and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Chipotle Mexican. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Chipotle Mexican.
Diversification Opportunities for Citigroup and Chipotle Mexican
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Chipotle is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Chipotle Mexican Grill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chipotle Mexican Grill and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Chipotle Mexican. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chipotle Mexican Grill has no effect on the direction of Citigroup i.e., Citigroup and Chipotle Mexican go up and down completely randomly.
Pair Corralation between Citigroup and Chipotle Mexican
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.76 times more return on investment than Chipotle Mexican. However, Citigroup is 1.32 times less risky than Chipotle Mexican. It trades about 0.0 of its potential returns per unit of risk. Chipotle Mexican Grill is currently generating about -0.18 per unit of risk. If you would invest 7,939 in Citigroup on November 29, 2024 and sell it today you would lose (32.00) from holding Citigroup or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Chipotle Mexican Grill
Performance |
| Timeline |
| Citigroup |
| Chipotle Mexican Grill |
Citigroup and Chipotle Mexican Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Chipotle Mexican
The main advantage of trading using opposite Citigroup and Chipotle Mexican positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Chipotle Mexican can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chipotle Mexican will offset losses from the drop in Chipotle Mexican's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Chipotle Mexican vs. Ross Stores | Chipotle Mexican vs. The Bank of | Chipotle Mexican vs. GMxico Transportes SAB | Chipotle Mexican vs. First Republic Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |