Correlation Between Chipotle Mexican and ZW Data
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and ZW Data 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 ZW Data 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 ZW Data Action, you can compare the effects of market volatilities on Chipotle Mexican and ZW Data 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 ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and ZW Data.
Diversification Opportunities for Chipotle Mexican and ZW Data
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chipotle and CNET is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and ZW Data go up and down completely randomly.
Pair Corralation between Chipotle Mexican and ZW Data
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 0.37 times more return on investment than ZW Data. However, Chipotle Mexican Grill is 2.68 times less risky than ZW Data. It trades about 0.24 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.18 per unit of risk. If you would invest 3,059 in Chipotle Mexican Grill on November 7, 2025 and sell it today you would earn a total of 934.00 from holding Chipotle Mexican Grill or generate 30.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. ZW Data Action
Performance |
| Timeline |
| Chipotle Mexican Grill |
| ZW Data Action |
Chipotle Mexican and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and ZW Data
The main advantage of trading using opposite Chipotle Mexican and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| Chipotle Mexican vs. Yum Brands | Chipotle Mexican vs. Las Vegas Sands | Chipotle Mexican vs. Copart Inc | Chipotle Mexican vs. DR Horton |
| ZW Data vs. Baosheng Media Group | ZW Data vs. Cheetah Mobile | ZW Data vs. Onfolio Holdings | ZW Data vs. Star Fashion Culture |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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