Correlation Between GMS and Navios Maritime

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

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

Diversification Opportunities for GMS and Navios Maritime

0.0

Correlation Coefficient

GMS  Navios Maritime

Pay attention - limited upside

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

Pair Corralation between GMS and Navios Maritime

If you would invest (100.00) in Navios Maritime Midstream on September 26, 2024 and sell it today you would earn a total of  100.00  from holding Navios Maritime Midstream or generate -100.0% return on investment over 90 days.

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

GMS Inc  vs.  Navios Maritime Midstream

GMS Inc

Risk-Adjusted Performance

0 of 100

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 comparatively stable primary indicators, GMS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Navios Maritime Midstream

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Navios Maritime Midstream has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Navios Maritime is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with GMS and Navios Maritime

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

The idea behind GMS Inc and Navios Maritime Midstream 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.