Correlation Between GDI Integrated and Mccoy Global

Can any of the company-specific risk be diversified away by investing in both GDI Integrated and Mccoy Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GDI Integrated and Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GDI Integrated and Mccoy Global, you can compare the effects of market volatilities on GDI Integrated and Mccoy 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 GDI Integrated with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Integrated and Mccoy Global.

Diversification Opportunities for GDI Integrated and Mccoy Global

-0.12

Correlation Coefficient

GDI Integrated  Mccoy Global

Good diversification

The 3 months correlation between GDI and Mccoy is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GDI Integrated and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and GDI Integrated 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 GDI Integrated are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of GDI Integrated i.e., GDI Integrated and Mccoy Global go up and down completely randomly.

Pair Corralation between GDI Integrated and Mccoy Global

Assuming the 90 days trading horizon GDI Integrated is expected to under-perform the Mccoy Global. But the stock apears to be less risky and, when comparing its historical volatility, GDI Integrated is 2.04 times less risky than Mccoy Global. The stock trades about -0.17 of its potential returns per unit of risk. The Mccoy Global is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  278.00  in Mccoy Global on December 20, 2024 and sell it today you would earn a total of  40.00  from holding Mccoy Global or generate 14.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GDI Integrated  vs.  Mccoy Global

GDI Integrated

Risk-Adjusted Performance

Very Weak

Over the last 90 days GDI Integrated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Mccoy Global

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mccoy Global are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Mccoy Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GDI Integrated and Mccoy Global

The main advantage of trading using opposite GDI Integrated and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDI Integrated position performs unexpectedly, Mccoy 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 Mccoy Global will offset losses from the drop in Mccoy Global's long position.

The idea behind GDI Integrated and Mccoy Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.