Correlation Between CompoSecure and Goldrich Mining

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

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

Diversification Opportunities for CompoSecure and Goldrich Mining

0.0

Correlation Coefficient

CompoSecure  Goldrich Mining

Pay attention - limited upside

The 3 months correlation between CompoSecure and Goldrich is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and Goldrich Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldrich Mining and CompoSecure 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 CompoSecure are associated (or correlated) with Goldrich Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldrich Mining has no effect on the direction of CompoSecure i.e., CompoSecure and Goldrich Mining go up and down completely randomly.

Pair Corralation between CompoSecure and Goldrich Mining

If you would invest  373.00  in CompoSecure on April 24, 2025 and sell it today you would earn a total of  316.00  from holding CompoSecure or generate 84.72% return on investment over 90 days.

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

CompoSecure  vs.  Goldrich Mining Co

CompoSecure

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

Goldrich Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goldrich Mining Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Goldrich Mining is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CompoSecure and Goldrich Mining

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

The idea behind CompoSecure and Goldrich Mining Co 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.