Correlation Between GMS and STANLN
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By analyzing existing cross correlation between GMS Inc and STANLN 32 17 APR 25, you can compare the effects of market volatilities on GMS and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and STANLN.
Diversification Opportunities for GMS and STANLN
Very weak diversification
The 3 months correlation between GMS and STANLN is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of GMS i.e., GMS and STANLN go up and down completely randomly.
Pair Corralation between GMS and STANLN
Considering the 90-day investment horizon GMS Inc is expected to under-perform the STANLN. In addition to that, GMS is 112.6 times more volatile than STANLN 32 17 APR 25. It trades about -0.07 of its total potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.58 per unit of volatility. If you would invest 9,952 in STANLN 32 17 APR 25 on October 25, 2024 and sell it today you would earn a total of 2.00 from holding STANLN 32 17 APR 25 or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 16.67% |
| Values | Daily Returns |
GMS Inc vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| GMS Inc |
| STANLN 32 17 |
GMS and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMS and STANLN
The main advantage of trading using opposite GMS and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMS position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
| STANLN vs. Playtika Holding Corp | STANLN vs. ANTA Sports Products | STANLN vs. Old Republic International | STANLN vs. United Parks Resorts |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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