Correlation Between 207597EG6 and GMS
Specify exactly 2 symbols:
By analyzing existing cross correlation between CONNECTICUT LT PWR and GMS Inc, you can compare the effects of market volatilities on 207597EG6 and GMS 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 207597EG6 with a short position of GMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 207597EG6 and GMS.
Diversification Opportunities for 207597EG6 and GMS
Very good diversification
The 3 months correlation between 207597EG6 and GMS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CONNECTICUT LT PWR and GMS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMS Inc and 207597EG6 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 CONNECTICUT LT PWR are associated (or correlated) with GMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMS Inc has no effect on the direction of 207597EG6 i.e., 207597EG6 and GMS go up and down completely randomly.
Pair Corralation between 207597EG6 and GMS
Assuming the 90 days trading horizon CONNECTICUT LT PWR is expected to under-perform the GMS. In addition to that, 207597EG6 is 1.13 times more volatile than GMS Inc. It trades about -0.12 of its total potential returns per unit of risk. GMS Inc is currently generating about 0.23 per unit of volatility. 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 | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
CONNECTICUT LT PWR vs. GMS Inc
Performance |
| Timeline |
| CONNECTICUT LT PWR |
| GMS Inc |
207597EG6 and GMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 207597EG6 and GMS
The main advantage of trading using opposite 207597EG6 and GMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 207597EG6 position performs unexpectedly, GMS 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 GMS will offset losses from the drop in GMS's long position.| 207597EG6 vs. Pintec Technology Holdings | 207597EG6 vs. Univest Pennsylvania | 207597EG6 vs. Hurco Companies | 207597EG6 vs. AmTrust Financial Services |
| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |