Correlation Between GMS and Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between GMS Inc and Global Payments 415, you can compare the effects of market volatilities on GMS and Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and Global.
Diversification Opportunities for GMS and Global
Excellent diversification
The 3 months correlation between GMS and Global is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and Global Payments 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 415 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 415 has no effect on the direction of GMS i.e., GMS and Global go up and down completely randomly.
Pair Corralation between GMS and Global
Considering the 90-day investment horizon GMS Inc is expected to generate 0.71 times more return on investment than Global. However, GMS Inc is 1.4 times less risky than Global. It trades about 0.23 of its potential returns per unit of risk. Global Payments 415 is currently generating about -0.18 per unit of risk. If you would invest 9,161 in GMS Inc on September 4, 2024 and sell it today you would earn a total of 852.00 from holding GMS Inc or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
GMS Inc vs. Global Payments 415
Performance |
| Timeline |
| GMS Inc |
| Global Payments 415 |
GMS and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMS and Global
The main advantage of trading using opposite GMS and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMS position performs unexpectedly, Global 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 Global will offset losses from the drop in Global's long position.| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
| Global vs. Where Food Comes | Global vs. Uber Technologies | Global vs. Paysafe | Global vs. Dream Finders Homes |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |