Correlation Between Peloton Minerals and Gold Springs

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

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

Diversification Opportunities for Peloton Minerals and Gold Springs

0.06

Correlation Coefficient

Peloton Minerals  Gold Springs

Significant diversification

The 3 months correlation between Peloton and Gold is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Minerals and Gold Springs Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Springs Resource and Peloton Minerals 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 Peloton Minerals are associated (or correlated) with Gold Springs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Springs Resource has no effect on the direction of Peloton Minerals i.e., Peloton Minerals and Gold Springs go up and down completely randomly.

Pair Corralation between Peloton Minerals and Gold Springs

Assuming the 90 days horizon Peloton Minerals is expected to under-perform the Gold Springs. But the otc stock apears to be less risky and, when comparing its historical volatility, Peloton Minerals is 1.56 times less risky than Gold Springs. The otc stock trades about -0.02 of its potential returns per unit of risk. The Gold Springs Resource is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  6.70  in Gold Springs Resource on July 8, 2025 and sell it today you would lose (0.20) from holding Gold Springs Resource or give up 2.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Peloton Minerals  vs.  Gold Springs Resource

Peloton Minerals

Risk-Adjusted Performance

Weakest

Over the last 90 days Peloton Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Peloton Minerals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Gold Springs Resource

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gold Springs Resource are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gold Springs may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Peloton Minerals and Gold Springs

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

The idea behind Peloton Minerals and Gold Springs Resource 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..