Correlation Between Wingstop and Tourmaline Bio

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

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

Diversification Opportunities for Wingstop and Tourmaline Bio

-0.88

Correlation Coefficient

Wingstop  Tourmaline Bio

Pay attention - limited upside

The 3 months correlation between Wingstop and Tourmaline is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Wingstop and Tourmaline Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourmaline Bio and Wingstop 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 Wingstop are associated (or correlated) with Tourmaline Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourmaline Bio has no effect on the direction of Wingstop i.e., Wingstop and Tourmaline Bio go up and down completely randomly.

Pair Corralation between Wingstop and Tourmaline Bio

Given the investment horizon of 90 days Wingstop is expected to under-perform the Tourmaline Bio. But the stock apears to be less risky and, when comparing its historical volatility, Wingstop is 1.81 times less risky than Tourmaline Bio. The stock trades about -0.07 of its potential returns per unit of risk. The Tourmaline Bio is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,596  in Tourmaline Bio on July 6, 2025 and sell it today you would earn a total of  3,194  from holding Tourmaline Bio or generate 200.13% return on investment over 90 days.

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

Wingstop  vs.  Tourmaline Bio

Wingstop

Risk-Adjusted Performance

Weakest

Over the last 90 days Wingstop has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Tourmaline Bio

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Bio are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite weak primary indicators, Tourmaline Bio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wingstop and Tourmaline Bio

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

The idea behind Wingstop and Tourmaline Bio 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.