Correlation Between Goldrich Mining and Wingstop

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

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

Diversification Opportunities for Goldrich Mining and Wingstop

0.0

Correlation Coefficient

Goldrich Mining  Wingstop

Pay attention - limited upside

The 3 months correlation between Goldrich and Wingstop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldrich Mining Co and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop and Goldrich Mining 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 Goldrich Mining Co 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 Goldrich Mining i.e., Goldrich Mining and Wingstop go up and down completely randomly.

Pair Corralation between Goldrich Mining and Wingstop

If you would invest  26,898  in Wingstop on May 5, 2025 and sell it today you would earn a total of  9,347  from holding Wingstop or generate 34.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Goldrich Mining Co  vs.  Wingstop

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.

Wingstop

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wingstop are ranked lower than 10 (%) 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 Goldrich Mining and Wingstop

The main advantage of trading using opposite Goldrich Mining and Wingstop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldrich Mining 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 Goldrich Mining Co 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..