Correlation Between GMS and Apeiron Capital

Can any of the company-specific risk be diversified away by investing in both GMS and Apeiron Capital 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 GMS and Apeiron Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GMS Inc and Apeiron Capital Investment, you can compare the effects of market volatilities on GMS and Apeiron Capital 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 Apeiron Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and Apeiron Capital.

Diversification Opportunities for GMS and Apeiron Capital

0.0

Correlation Coefficient

GMS  Apeiron Capital

Pay attention - limited upside

The 3 months correlation between GMS and Apeiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and Apeiron Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apeiron Capital Inve 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 Apeiron Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apeiron Capital Inve has no effect on the direction of GMS i.e., GMS and Apeiron Capital go up and down completely randomly.

Pair Corralation between GMS and Apeiron Capital

If you would invest  9,161  in GMS Inc on September 5, 2024 and sell it today you would earn a total of  1,107  from holding GMS Inc or generate 12.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GMS Inc  vs.  Apeiron Capital Investment

GMS Inc

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GMS Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, GMS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apeiron Capital Inve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apeiron Capital Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Apeiron Capital is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with GMS and Apeiron Capital

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

The idea behind GMS Inc and Apeiron Capital Investment 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.