Correlation Between GMS and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both GMS and Solstad Offshore 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 GMS and Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMS Inc and Solstad Offshore ASA, you can compare the effects of market volatilities on GMS and Solstad Offshore 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 GMS with a short position of Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and Solstad Offshore.
Diversification Opportunities for GMS and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GMS and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA and GMS 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 GMS Inc are associated (or correlated) with Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of GMS i.e., GMS and Solstad Offshore go up and down completely randomly.
Pair Corralation between GMS and Solstad Offshore
If you would invest 8,295 in GMS Inc on November 6, 2024 and sell it today you would earn a total of 139.00 from holding GMS Inc or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMS Inc vs. Solstad Offshore ASA
Performance |
| Timeline |
| GMS Inc |
| Solstad Offshore ASA |
GMS and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMS and Solstad Offshore
The main advantage of trading using opposite GMS and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMS position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
| Solstad Offshore vs. National CineMedia | Solstad Offshore vs. Modine Manufacturing | Solstad Offshore vs. Roblox Corp | Solstad Offshore vs. NanoTech Gaming |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |