Correlation Between WELLTOWER and Chipotle Mexican
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By analyzing existing cross correlation between WELLTOWER INC 425 and Chipotle Mexican Grill, you can compare the effects of market volatilities on WELLTOWER 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 WELLTOWER with a short position of Chipotle Mexican. Check out your portfolio center. Please also check ongoing floating volatility patterns of WELLTOWER and Chipotle Mexican.
Diversification Opportunities for WELLTOWER and Chipotle Mexican
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WELLTOWER and Chipotle is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding WELLTOWER INC 425 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 WELLTOWER 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 WELLTOWER INC 425 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 WELLTOWER i.e., WELLTOWER and Chipotle Mexican go up and down completely randomly.
Pair Corralation between WELLTOWER and Chipotle Mexican
Assuming the 90 days trading horizon WELLTOWER INC 425 is expected to under-perform the Chipotle Mexican. But the bond apears to be less risky and, when comparing its historical volatility, WELLTOWER INC 425 is 3.94 times less risky than Chipotle Mexican. The bond trades about -0.22 of its potential returns per unit of risk. The Chipotle Mexican Grill is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 5,638 in Chipotle Mexican Grill on September 3, 2024 and sell it today you would earn a total of 514.00 from holding Chipotle Mexican Grill or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
WELLTOWER INC 425 vs. Chipotle Mexican Grill
Performance |
| Timeline |
| WELLTOWER INC 425 |
| Chipotle Mexican Grill |
WELLTOWER and Chipotle Mexican Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WELLTOWER and Chipotle Mexican
The main advantage of trading using opposite WELLTOWER and Chipotle Mexican positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WELLTOWER 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.| WELLTOWER vs. Chipotle Mexican Grill | WELLTOWER vs. Shake Shack | WELLTOWER vs. Dine Brands Global | WELLTOWER vs. RBC Bearings Incorporated |
| Chipotle Mexican vs. Highway Holdings Limited | Chipotle Mexican vs. QCR Holdings | Chipotle Mexican vs. Partner Communications | Chipotle Mexican vs. Acumen Pharmaceuticals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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