Correlation Between Chipotle Mexican and T Rowe
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and T Rowe 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 T Rowe 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 T Rowe Price, you can compare the effects of market volatilities on Chipotle Mexican and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and T Rowe.
Diversification Opportunities for Chipotle Mexican and T Rowe
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chipotle and RPIEX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and T Rowe go up and down completely randomly.
Pair Corralation between Chipotle Mexican and T Rowe
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 9.29 times more return on investment than T Rowe. However, Chipotle Mexican is 9.29 times more volatile than T Rowe Price. It trades about 0.18 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.13 per unit of risk. If you would invest 3,163 in Chipotle Mexican Grill on November 21, 2025 and sell it today you would earn a total of 709.00 from holding Chipotle Mexican Grill or generate 22.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. T Rowe Price
Performance |
| Timeline |
| Chipotle Mexican Grill |
| T Rowe Price |
Chipotle Mexican and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and T Rowe
The main advantage of trading using opposite Chipotle Mexican and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.| Chipotle Mexican vs. Rent the Runway | Chipotle Mexican vs. Jiuzi Holdings | Chipotle Mexican vs. Worksport | Chipotle Mexican vs. Alta Global Group |
| T Rowe vs. Western Asset E | T Rowe vs. Western Asset E | T Rowe vs. Frost Total Return | T Rowe vs. T Rowe Price |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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