Correlation Between OURGAME INTHOLDL and Chipotle Mexican

Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL and Chipotle Mexican 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 OURGAME INTHOLDL and Chipotle Mexican into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and Chipotle Mexican Grill, you can compare the effects of market volatilities on OURGAME INTHOLDL 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 OURGAME INTHOLDL with a short position of Chipotle Mexican. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL and Chipotle Mexican.

Diversification Opportunities for OURGAME INTHOLDL and Chipotle Mexican

0.0

Correlation Coefficient

OURGAME INTHOLDL  Chipotle Mexican

Pay attention - limited upside

The 3 months correlation between OURGAME and Chipotle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 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 OURGAME INTHOLDL 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 OURGAME INTHOLDL 00005 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 OURGAME INTHOLDL i.e., OURGAME INTHOLDL and Chipotle Mexican go up and down completely randomly.

Pair Corralation between OURGAME INTHOLDL and Chipotle Mexican

If you would invest  1.60  in OURGAME INTHOLDL 00005 on December 30, 2024 and sell it today you would earn a total of  0.00  from holding OURGAME INTHOLDL 00005 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

OURGAME INTHOLDL 00005  vs.  Chipotle Mexican Grill

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Chipotle Mexican Grill

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chipotle Mexican Grill has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with OURGAME INTHOLDL and Chipotle Mexican

The main advantage of trading using opposite OURGAME INTHOLDL and Chipotle Mexican positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL 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.

The idea behind OURGAME INTHOLDL 00005 and Chipotle Mexican Grill pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.