Correlation Between 37940XAQ5 and Chipotle Mexican
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By analyzing existing cross correlation between GPN 54 15 AUG 32 and Chipotle Mexican Grill, you can compare the effects of market volatilities on 37940XAQ5 and Chipotle Mexican 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 37940XAQ5 with a short position of Chipotle Mexican. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37940XAQ5 and Chipotle Mexican.
Diversification Opportunities for 37940XAQ5 and Chipotle Mexican
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 37940XAQ5 and Chipotle is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding GPN 54 15 AUG 32 and Chipotle Mexican Grill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chipotle Mexican Grill and 37940XAQ5 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 GPN 54 15 AUG 32 are associated (or correlated) with Chipotle Mexican. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chipotle Mexican Grill has no effect on the direction of 37940XAQ5 i.e., 37940XAQ5 and Chipotle Mexican go up and down completely randomly.
Pair Corralation between 37940XAQ5 and Chipotle Mexican
Assuming the 90 days trading horizon 37940XAQ5 is expected to generate 34.94 times less return on investment than Chipotle Mexican. But when comparing it to its historical volatility, GPN 54 15 AUG 32 is 1.96 times less risky than Chipotle Mexican. It trades about 0.0 of its potential returns per unit of risk. Chipotle Mexican Grill is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,127 in Chipotle Mexican Grill on September 2, 2024 and sell it today you would earn a total of 2,025 from holding Chipotle Mexican Grill or generate 49.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
GPN 54 15 AUG 32 vs. Chipotle Mexican Grill
Performance |
| Timeline |
| GPN 54 15 |
| Chipotle Mexican Grill |
37940XAQ5 and Chipotle Mexican Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 37940XAQ5 and Chipotle Mexican
The main advantage of trading using opposite 37940XAQ5 and Chipotle Mexican positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37940XAQ5 position performs unexpectedly, Chipotle Mexican 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 Chipotle Mexican will offset losses from the drop in Chipotle Mexican's long position.| 37940XAQ5 vs. AmTrust Financial Services | 37940XAQ5 vs. Arrow Financial | 37940XAQ5 vs. Mesa Air Group | 37940XAQ5 vs. NETGEAR |
| Chipotle Mexican vs. Starbucks | Chipotle Mexican vs. Dominos Pizza | Chipotle Mexican vs. Yum Brands | Chipotle Mexican vs. The Wendys Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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