Correlation Between CLPS and Wingstop

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

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

Diversification Opportunities for CLPS and Wingstop

-0.61

Correlation Coefficient

CLPS  Wingstop

Excellent diversification

The 3 months correlation between CLPS and Wingstop is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop and CLPS 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 CLPS Inc 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 CLPS i.e., CLPS and Wingstop go up and down completely randomly.

Pair Corralation between CLPS and Wingstop

Given the investment horizon of 90 days CLPS Inc is expected to under-perform the Wingstop. In addition to that, CLPS is 1.19 times more volatile than Wingstop. It trades about -0.06 of its total potential returns per unit of risk. Wingstop is currently generating about 0.17 per unit of volatility. If you would invest  24,257  in Wingstop on April 3, 2025 and sell it today you would earn a total of  9,288  from holding Wingstop or generate 38.29% return on investment over 90 days.

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

CLPS Inc  vs.  Wingstop

CLPS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Wingstop

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wingstop are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Wingstop reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLPS and Wingstop

The main advantage of trading using opposite CLPS and Wingstop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLPS 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 CLPS Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.