Correlation Between Chipotle Mexican and UTime
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and UTime 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 UTime 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 UTime Limited, you can compare the effects of market volatilities on Chipotle Mexican and UTime 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 UTime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and UTime.
Diversification Opportunities for Chipotle Mexican and UTime
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chipotle and UTime is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime Limited 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 UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and UTime go up and down completely randomly.
Pair Corralation between Chipotle Mexican and UTime
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 0.13 times more return on investment than UTime. However, Chipotle Mexican Grill is 7.93 times less risky than UTime. It trades about 0.09 of its potential returns per unit of risk. UTime Limited is currently generating about 0.01 per unit of risk. If you would invest 3,097 in Chipotle Mexican Grill on September 3, 2024 and sell it today you would earn a total of 3,055 from holding Chipotle Mexican Grill or generate 98.64% 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. UTime Limited
Performance |
| Timeline |
| Chipotle Mexican Grill |
| UTime Limited |
Chipotle Mexican and UTime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and UTime
The main advantage of trading using opposite Chipotle Mexican and UTime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, UTime 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 UTime will offset losses from the drop in UTime's long position.| Chipotle Mexican vs. Highway Holdings Limited | Chipotle Mexican vs. QCR Holdings | Chipotle Mexican vs. Partner Communications | Chipotle Mexican vs. Acumen Pharmaceuticals |
| UTime vs. Albertsons Companies | UTime vs. CECO Environmental Corp | UTime vs. Papaya Growth Opportunity | UTime vs. BBB Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |