Correlation Between GMS and Performant Healthcare,

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

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

Diversification Opportunities for GMS and Performant Healthcare,

0.45

Correlation Coefficient

GMS  Performant Healthcare,

Very weak diversification

The 3 months correlation between GMS and Performant is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and Performant Healthcare, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Healthcare, 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 Performant Healthcare,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Healthcare, has no effect on the direction of GMS i.e., GMS and Performant Healthcare, go up and down completely randomly.

Pair Corralation between GMS and Performant Healthcare,

Considering the 90-day investment horizon GMS Inc is expected to under-perform the Performant Healthcare,. But the stock apears to be less risky and, when comparing its historical volatility, GMS Inc is 2.12 times less risky than Performant Healthcare,. The stock trades about -0.19 of its potential returns per unit of risk. The Performant Healthcare, is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  356.00  in Performant Healthcare, on December 17, 2024 and sell it today you would lose (62.00) from holding Performant Healthcare, or give up 17.42% of portfolio value over 90 days.

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

GMS Inc  vs.  Performant Healthcare,

GMS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days GMS Inc 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 primary indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Performant Healthcare,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Performant Healthcare, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with GMS and Performant Healthcare,

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

The idea behind GMS Inc and Performant Healthcare, 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.