Correlation Between Chipotle Mexican and Sharplink Gaming
Can any of the company-specific risk be diversified away by investing in both Chipotle Mexican and Sharplink Gaming 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 Sharplink Gaming 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 Sharplink Gaming, you can compare the effects of market volatilities on Chipotle Mexican and Sharplink Gaming 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 Sharplink Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipotle Mexican and Sharplink Gaming.
Diversification Opportunities for Chipotle Mexican and Sharplink Gaming
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chipotle and Sharplink is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chipotle Mexican Grill and Sharplink Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharplink Gaming 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 Sharplink Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharplink Gaming has no effect on the direction of Chipotle Mexican i.e., Chipotle Mexican and Sharplink Gaming go up and down completely randomly.
Pair Corralation between Chipotle Mexican and Sharplink Gaming
Considering the 90-day investment horizon Chipotle Mexican Grill is expected to generate 0.63 times more return on investment than Sharplink Gaming. However, Chipotle Mexican Grill is 1.6 times less risky than Sharplink Gaming. It trades about -0.06 of its potential returns per unit of risk. Sharplink Gaming is currently generating about -0.08 per unit of risk. If you would invest 3,896 in Chipotle Mexican Grill on September 11, 2025 and sell it today you would lose (502.00) from holding Chipotle Mexican Grill or give up 12.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipotle Mexican Grill vs. Sharplink Gaming
Performance |
| Timeline |
| Chipotle Mexican Grill |
| Sharplink Gaming |
Chipotle Mexican and Sharplink Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipotle Mexican and Sharplink Gaming
The main advantage of trading using opposite Chipotle Mexican and Sharplink Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipotle Mexican position performs unexpectedly, Sharplink Gaming 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 Sharplink Gaming will offset losses from the drop in Sharplink Gaming's long position.| Chipotle Mexican vs. Yum Brands | Chipotle Mexican vs. Las Vegas Sands | Chipotle Mexican vs. Copart Inc | Chipotle Mexican vs. DR Horton |
| Sharplink Gaming vs. Wynn Resorts Limited | Sharplink Gaming vs. Honda Motor Co | Sharplink Gaming vs. Wayfair | Sharplink Gaming vs. Rivian Automotive |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |