Correlation Between GMS and KINDER
Specify exactly 2 symbols:
By analyzing existing cross correlation between GMS Inc and KINDER MORGAN INC, you can compare the effects of market volatilities on GMS and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and KINDER.
Diversification Opportunities for GMS and KINDER
Excellent diversification
The 3 months correlation between GMS and KINDER is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of GMS i.e., GMS and KINDER go up and down completely randomly.
Pair Corralation between GMS and KINDER
Considering the 90-day investment horizon GMS Inc is expected to generate 1.93 times more return on investment than KINDER. However, GMS is 1.93 times more volatile than KINDER MORGAN INC. It trades about 0.07 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about 0.0 per unit of risk. If you would invest 5,665 in GMS Inc on September 3, 2024 and sell it today you would earn a total of 4,370 from holding GMS Inc or generate 77.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
GMS Inc vs. KINDER MORGAN INC
Performance |
| Timeline |
| GMS Inc |
| KINDER MORGAN INC |
GMS and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMS and KINDER
The main advantage of trading using opposite GMS and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMS position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
| KINDER vs. GMS Inc | KINDER vs. National Vision Holdings | KINDER vs. Aegon NV ADR | KINDER vs. Pool Corporation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |