Correlation Between Chipotle Mexican and Chijet
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and Chijet 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 Chijet 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 Chijet Motor Company,, you can compare the effects of market volatilities on Chipotle Mexican and Chijet 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 Chijet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and Chijet.
Diversification Opportunities for Chipotle Mexican and Chijet
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chipotle and Chijet is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and Chijet Motor Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chijet Motor , 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 Chijet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chijet Motor , has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and Chijet go up and down completely randomly.
Pair Corralation between Chipotle Mexican and Chijet
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 0.17 times more return on investment than Chijet. However, Chipotle Mexican Grill is 6.05 times less risky than Chijet. It trades about 0.1 of its potential returns per unit of risk. Chijet Motor Company, is currently generating about -0.05 per unit of risk. If you would invest 2,893 in Chipotle Mexican Grill on August 31, 2024 and sell it today you would earn a total of 3,259 from holding Chipotle Mexican Grill or generate 112.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. Chijet Motor Company,
Performance |
| Timeline |
| Chipotle Mexican Grill |
| Chijet Motor , |
Chipotle Mexican and Chijet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and Chijet
The main advantage of trading using opposite Chipotle Mexican and Chijet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, Chijet 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 Chijet will offset losses from the drop in Chijet's long position.| Chipotle Mexican vs. RLJ Lodging Trust | Chipotle Mexican vs. Aquagold International | Chipotle Mexican vs. Stepstone Group | Chipotle Mexican vs. Morningstar Unconstrained Allocation |
| Chijet vs. Playstudios | Chijet vs. Nike Inc | Chijet vs. Playtika Holding Corp | Chijet vs. FitLife Brands, Common |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |