Correlation Between Chipotle Mexican and California-Engels
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and California-Engels 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 California-Engels 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 California Engels Mining, you can compare the effects of market volatilities on Chipotle Mexican and California-Engels 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 California-Engels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and California-Engels.
Diversification Opportunities for Chipotle Mexican and California-Engels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chipotle and California-Engels is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and California Engels Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Engels Mining 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 California-Engels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Engels Mining has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and California-Engels go up and down completely randomly.
Pair Corralation between Chipotle Mexican and California-Engels
If you would invest 4,591 in Chipotle Mexican Grill on September 4, 2024 and sell it today you would earn a total of 1,463 from holding Chipotle Mexican Grill or generate 31.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. California Engels Mining
Performance |
| Timeline |
| Chipotle Mexican Grill |
| California Engels Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chipotle Mexican and California-Engels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and California-Engels
The main advantage of trading using opposite Chipotle Mexican and California-Engels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, California-Engels 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 California-Engels will offset losses from the drop in California-Engels' long position.| Chipotle Mexican vs. Hyatt Hotels | Chipotle Mexican vs. Smart Share Global | Chipotle Mexican vs. Sweetgreen | Chipotle Mexican vs. Wyndham Hotels Resorts |
| California-Engels vs. Timken Company | California-Engels vs. Weyco Group | California-Engels vs. Eastman Chemical | California-Engels vs. CF Industries Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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