Correlation Between Chipotle Mexican and THERMO
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By analyzing existing cross correlation between Chipotle Mexican Grill and THERMO FISHER SCIENTIFIC, you can compare the effects of market volatilities on Chipotle Mexican and THERMO 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 THERMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and THERMO.
Diversification Opportunities for Chipotle Mexican and THERMO
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chipotle and THERMO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and THERMO FISHER SCIENTIFIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THERMO FISHER SCIENTIFIC 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 THERMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THERMO FISHER SCIENTIFIC has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and THERMO go up and down completely randomly.
Pair Corralation between Chipotle Mexican and THERMO
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 1.48 times more return on investment than THERMO. However, Chipotle Mexican is 1.48 times more volatile than THERMO FISHER SCIENTIFIC. It trades about 0.24 of its potential returns per unit of risk. THERMO FISHER SCIENTIFIC is currently generating about 0.14 per unit of risk. If you would invest 5,927 in Chipotle Mexican Grill on September 12, 2024 and sell it today you would earn a total of 531.00 from holding Chipotle Mexican Grill or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. THERMO FISHER SCIENTIFIC
Performance |
| Timeline |
| Chipotle Mexican Grill |
| THERMO FISHER SCIENTIFIC |
Chipotle Mexican and THERMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and THERMO
The main advantage of trading using opposite Chipotle Mexican and THERMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, THERMO 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 THERMO will offset losses from the drop in THERMO's long position.| Chipotle Mexican vs. Starbucks | Chipotle Mexican vs. Dominos Pizza | Chipotle Mexican vs. Yum Brands | Chipotle Mexican vs. The Wendys Co |
| THERMO vs. Bt Brands | THERMO vs. Chipotle Mexican Grill | THERMO vs. Aegon NV ADR | THERMO vs. Texas Roadhouse |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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