Correlation Between Chipotle Mexican and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and Las Vegas 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 Las Vegas 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 Las Vegas Sands, you can compare the effects of market volatilities on Chipotle Mexican and Las Vegas 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 Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and Las Vegas.
Diversification Opportunities for Chipotle Mexican and Las Vegas
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chipotle and Las is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands 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 Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and Las Vegas go up and down completely randomly.
Pair Corralation between Chipotle Mexican and Las Vegas
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to under-perform the Las Vegas. In addition to that, Chipotle Mexican is 1.28 times more volatile than Las Vegas Sands. It trades about -0.02 of its total potential returns per unit of risk. Las Vegas Sands is currently generating about 0.17 per unit of volatility. If you would invest 5,159 in Las Vegas Sands on October 7, 2025 and sell it today you would earn a total of 1,358 from holding Las Vegas Sands or generate 26.31% 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. Las Vegas Sands
Performance |
| Timeline |
| Chipotle Mexican Grill |
| Las Vegas Sands |
Chipotle Mexican and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and Las Vegas
The main advantage of trading using opposite Chipotle Mexican and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| Chipotle Mexican vs. Yum Brands | Chipotle Mexican vs. Las Vegas Sands | Chipotle Mexican vs. Copart Inc | Chipotle Mexican vs. DR Horton |
| Las Vegas vs. Flutter Entertainment plc | Las Vegas vs. Copart Inc | Las Vegas vs. Chipotle Mexican Grill | Las Vegas vs. Yum Brands |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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