Correlation Between Fastenal and Global Industrial
Can any of the company-specific risk be diversified away by investing in both Fastenal and Global Industrial 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 Fastenal and Global Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastenal Company and Global Industrial Co, you can compare the effects of market volatilities on Fastenal and Global Industrial 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 Fastenal with a short position of Global Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastenal and Global Industrial.
Diversification Opportunities for Fastenal and Global Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fastenal and Global is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fastenal Company and Global Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Industrial and Fastenal 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 Fastenal Company are associated (or correlated) with Global Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Industrial has no effect on the direction of Fastenal i.e., Fastenal and Global Industrial go up and down completely randomly.
Pair Corralation between Fastenal and Global Industrial
Given the investment horizon of 90 days Fastenal is expected to generate 2.11 times less return on investment than Global Industrial. But when comparing it to its historical volatility, Fastenal Company is 3.12 times less risky than Global Industrial. It trades about 0.26 of its potential returns per unit of risk. Global Industrial Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,681 in Global Industrial Co on June 7, 2025 and sell it today you would earn a total of 1,141 from holding Global Industrial Co or generate 42.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fastenal Company vs. Global Industrial Co
Performance |
| Timeline |
| Fastenal |
| Global Industrial |
Fastenal and Global Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastenal and Global Industrial
The main advantage of trading using opposite Fastenal and Global Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastenal position performs unexpectedly, Global Industrial 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 Global Industrial will offset losses from the drop in Global Industrial's long position.| Fastenal vs. Global Industrial Co | Fastenal vs. EVI Industries | Fastenal vs. Core Main | Fastenal vs. Watsco Inc |
| Global Industrial vs. BlueLinx Holdings | Global Industrial vs. Core Main | Global Industrial vs. PC Connection | Global Industrial vs. Distribution Solutions Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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