Correlation Between Chipotle Mexican and 06738EBU8
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By analyzing existing cross correlation between Chipotle Mexican Grill and BACR 2279 24 NOV 27, you can compare the effects of market volatilities on Chipotle Mexican and 06738EBU8 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 06738EBU8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and 06738EBU8.
Diversification Opportunities for Chipotle Mexican and 06738EBU8
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chipotle and 06738EBU8 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and BACR 2279 24 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BACR 2279 24 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 06738EBU8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BACR 2279 24 has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and 06738EBU8 go up and down completely randomly.
Pair Corralation between Chipotle Mexican and 06738EBU8
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 0.92 times more return on investment than 06738EBU8. However, Chipotle Mexican Grill is 1.08 times less risky than 06738EBU8. It trades about 0.24 of its potential returns per unit of risk. BACR 2279 24 NOV 27 is currently generating about -0.1 per unit of risk. If you would invest 5,638 in Chipotle Mexican Grill on September 4, 2024 and sell it today you would earn a total of 416.00 from holding Chipotle Mexican Grill or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. BACR 2279 24 NOV 27
Performance |
| Timeline |
| Chipotle Mexican Grill |
| BACR 2279 24 |
Chipotle Mexican and 06738EBU8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and 06738EBU8
The main advantage of trading using opposite Chipotle Mexican and 06738EBU8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, 06738EBU8 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 06738EBU8 will offset losses from the drop in 06738EBU8's long position.| Chipotle Mexican vs. Hyatt Hotels | Chipotle Mexican vs. Smart Share Global | Chipotle Mexican vs. Sweetgreen | Chipotle Mexican vs. Wyndham Hotels Resorts |
| 06738EBU8 vs. LENSAR Inc | 06738EBU8 vs. Microbot Medical | 06738EBU8 vs. FiscalNote Holdings | 06738EBU8 vs. Zhihu Inc ADR |
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 Stocks Directory module to find actively traded stocks across global markets.
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