Correlation Between Chipotle Mexican and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and ANTA SPORTS 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 Chipotle Mexican and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chipotle Mexican Grill and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Chipotle Mexican and ANTA SPORTS 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 Chipotle Mexican with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and ANTA SPORTS.
Diversification Opportunities for Chipotle Mexican and ANTA SPORTS
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chipotle and ANTA is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and Chipotle Mexican 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 Chipotle Mexican Grill are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Chipotle Mexican and ANTA SPORTS
Assuming the 90 days horizon Chipotle Mexican Grill is expected to generate 0.68 times more return on investment than ANTA SPORTS. However, Chipotle Mexican Grill is 1.48 times less risky than ANTA SPORTS. It trades about 0.08 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of risk. If you would invest 2,947 in Chipotle Mexican Grill on September 3, 2024 and sell it today you would earn a total of 2,964 from holding Chipotle Mexican Grill or generate 100.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Chipotle Mexican Grill |
| ANTA SPORTS PRODUCT |
Chipotle Mexican and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and ANTA SPORTS
The main advantage of trading using opposite Chipotle Mexican and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Chipotle Mexican vs. ANTA SPORTS PRODUCT | Chipotle Mexican vs. TRADEDOUBLER AB SK | Chipotle Mexican vs. RCS MediaGroup SpA | Chipotle Mexican vs. Vastned Retail NV |
| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. JD SPORTS FASH | ANTA SPORTS vs. Columbia Sportswear | ANTA SPORTS vs. The Hanover Insurance |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |