Correlation Between Maplebear and Wingstop

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

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

Diversification Opportunities for Maplebear and Wingstop

-0.16

Correlation Coefficient

Maplebear  Wingstop

Good diversification

The 3 months correlation between Maplebear and Wingstop is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Maplebear and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop and Maplebear 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 Maplebear are associated (or correlated) with Wingstop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wingstop has no effect on the direction of Maplebear i.e., Maplebear and Wingstop go up and down completely randomly.

Pair Corralation between Maplebear and Wingstop

Given the investment horizon of 90 days Maplebear is expected to generate 3.5 times less return on investment than Wingstop. But when comparing it to its historical volatility, Maplebear is 1.87 times less risky than Wingstop. It trades about 0.03 of its potential returns per unit of risk. Wingstop is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  30,821  in Wingstop on May 15, 2025 and sell it today you would earn a total of  3,395  from holding Wingstop or generate 11.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Maplebear  vs.  Wingstop

Maplebear

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Maplebear is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Wingstop

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Wingstop are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Wingstop reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maplebear and Wingstop

The main advantage of trading using opposite Maplebear and Wingstop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maplebear position performs unexpectedly, Wingstop 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 Wingstop will offset losses from the drop in Wingstop's long position.

The idea behind Maplebear and Wingstop 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.