Correlation Between Chipotle Mexican and Vision Marine
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and Vision Marine 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 Vision Marine 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 Vision Marine Technologies, you can compare the effects of market volatilities on Chipotle Mexican and Vision Marine 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 Vision Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and Vision Marine.
Diversification Opportunities for Chipotle Mexican and Vision Marine
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chipotle and Vision is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno 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 Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and Vision Marine go up and down completely randomly.
Pair Corralation between Chipotle Mexican and Vision Marine
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 0.27 times more return on investment than Vision Marine. However, Chipotle Mexican Grill is 3.72 times less risky than Vision Marine. It trades about 0.09 of its potential returns per unit of risk. Vision Marine Technologies is currently generating about -0.14 per unit of risk. If you would invest 3,077 in Chipotle Mexican Grill on September 4, 2024 and sell it today you would earn a total of 2,977 from holding Chipotle Mexican Grill or generate 96.75% 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. Vision Marine Technologies
Performance |
| Timeline |
| Chipotle Mexican Grill |
| Vision Marine Techno |
Chipotle Mexican and Vision Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and Vision Marine
The main advantage of trading using opposite Chipotle Mexican and Vision Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, Vision Marine 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 Vision Marine will offset losses from the drop in Vision Marine's long position.| Chipotle Mexican vs. Hyatt Hotels | Chipotle Mexican vs. Smart Share Global | Chipotle Mexican vs. Sweetgreen | Chipotle Mexican vs. Wyndham Hotels Resorts |
| Vision Marine vs. Thor Industries | Vision Marine vs. BRP Inc | Vision Marine vs. EZGO Technologies | Vision Marine vs. Polaris Industries |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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