Correlation Between GMS and PETROLEOS
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By analyzing existing cross correlation between GMS Inc and PETROLEOS MEXICANOS 95, you can compare the effects of market volatilities on GMS and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and PETROLEOS.
Diversification Opportunities for GMS and PETROLEOS
Weak diversification
The 3 months correlation between GMS and PETROLEOS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and PETROLEOS MEXICANOS 95 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of GMS i.e., GMS and PETROLEOS go up and down completely randomly.
Pair Corralation between GMS and PETROLEOS
Considering the 90-day investment horizon GMS Inc is expected to generate 0.78 times more return on investment than PETROLEOS. However, GMS Inc is 1.29 times less risky than PETROLEOS. It trades about 0.07 of its potential returns per unit of risk. PETROLEOS MEXICANOS 95 is currently generating about 0.0 per unit of risk. If you would invest 5,535 in GMS Inc on September 2, 2024 and sell it today you would earn a total of 4,500 from holding GMS Inc or generate 81.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.54% |
| Values | Daily Returns |
GMS Inc vs. PETROLEOS MEXICANOS 95
Performance |
| Timeline |
| GMS Inc |
| PETROLEOS MEXICANOS |
GMS and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMS and PETROLEOS
The main advantage of trading using opposite GMS and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMS position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
| PETROLEOS vs. Bank of New | PETROLEOS vs. Upper Street Marketing | PETROLEOS vs. Kite Realty Group | PETROLEOS vs. Logan Ridge Finance |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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