CMG vs REED: Correlation
Chipotle Mexican Grill (CMG) and Reed's, Inc. (REED) show a negative relationship: their 3-year correlation of weekly returns is -0.23.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMG and REED?
Across a 3-year window, the weekly returns of CMG and REED correlate at -0.23, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.28 over 1 year against -0.23 over 3. Stretching to 5 years gives -0.07, with an annualized covariance of -841.8 %².
Within CMG's tracked universe of 36 assets, REED comes in at #31 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CMG outperformed by 71.4 percentage points (-12.7% for CMG against -84.1% for REED). Risk is not evenly split, since REED carries 2.9 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CMG vs REED: side by side
| CMG (Chipotle Mexican Grill) | REED (Reed's, Inc.) | |
|---|---|---|
| 1-year return | -12.7% | -84.1% |
| 5-year return | -2.9% | -99.5% |
| Volatility (ann.) | 35.7% | 104.6% |
| Beta vs S&P 500 | 0.89 | -0.39 |
| Max drawdown (3Y) | -58.9% | -96.4% |
| Market cap | $47.1B | – |
| P/E (trailing) | 34.5 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | CMG | REED |
|---|---|---|
| 2022 | -20.6% | -80.6% |
| 2023 | +64.8% | -54.3% |
| 2024 | +31.8% | -60.6% |
| 2025 | -38.6% | -44.4% |
| 2026 | +0.6% | -53.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CMG and REED good diversifiers for each other?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CMG and REED?
As of 2026-08-27, the correlation of weekly returns between CMG and REED is -0.23 over 3 years, -0.28 over 1 year and -0.07 over 5 years.
Is REED a good diversifier for CMG?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.23 mean?
A reading of -0.23 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cmg-vs-reed.json
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The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CMG correlations · REED correlations
