Correlation Between Chipotle Mexican and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and Flutter Entertainment 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 Flutter Entertainment 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 Flutter Entertainment plc, you can compare the effects of market volatilities on Chipotle Mexican and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and Flutter Entertainment.
Diversification Opportunities for Chipotle Mexican and Flutter Entertainment
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chipotle and Flutter is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Chipotle Mexican and Flutter Entertainment
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to under-perform the Flutter Entertainment. In addition to that, Chipotle Mexican is 1.29 times more volatile than Flutter Entertainment plc. It trades about -0.09 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.18 per unit of volatility. If you would invest 24,522 in Flutter Entertainment plc on May 27, 2025 and sell it today you would earn a total of 5,420 from holding Flutter Entertainment plc or generate 22.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. Flutter Entertainment plc
Performance |
| Timeline |
| Chipotle Mexican Grill |
| Flutter Entertainment plc |
Chipotle Mexican and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and Flutter Entertainment
The main advantage of trading using opposite Chipotle Mexican and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Chipotle Mexican vs. Dutch Bros | Chipotle Mexican vs. Costco Wholesale Corp | Chipotle Mexican vs. Walt Disney | Chipotle Mexican vs. Dominos Pizza Common |
| Flutter Entertainment vs. Dutch Bros | Flutter Entertainment vs. Costco Wholesale Corp | Flutter Entertainment vs. Walt Disney | Flutter Entertainment vs. Dominos Pizza Common |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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