Correlation Between GOME Retail and Logansport Financial
Can any of the company-specific risk be diversified away by investing in both GOME Retail and Logansport Financial 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 GOME Retail and Logansport Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOME Retail Holdings and Logansport Financial Corp, you can compare the effects of market volatilities on GOME Retail and Logansport Financial 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 GOME Retail with a short position of Logansport Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOME Retail and Logansport Financial.
Diversification Opportunities for GOME Retail and Logansport Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOME and Logansport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GOME Retail Holdings and Logansport Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logansport Financial Corp and GOME Retail 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 GOME Retail Holdings are associated (or correlated) with Logansport Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logansport Financial Corp has no effect on the direction of GOME Retail i.e., GOME Retail and Logansport Financial go up and down completely randomly.
Pair Corralation between GOME Retail and Logansport Financial
If you would invest 2,955 in Logansport Financial Corp on September 7, 2025 and sell it today you would earn a total of 285.00 from holding Logansport Financial Corp or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
GOME Retail Holdings vs. Logansport Financial Corp
Performance |
| Timeline |
| GOME Retail Holdings |
| Logansport Financial Corp |
GOME Retail and Logansport Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOME Retail and Logansport Financial
The main advantage of trading using opposite GOME Retail and Logansport Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOME Retail position performs unexpectedly, Logansport Financial 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 Logansport Financial will offset losses from the drop in Logansport Financial's long position.| GOME Retail vs. OReilly Automotive | GOME Retail vs. AutoZone | GOME Retail vs. Alimentation Couchen Tard | GOME Retail vs. Tractor Supply |
| Logansport Financial vs. Solucorp Industries | Logansport Financial vs. Granite City Food | Logansport Financial vs. Temecula Valley Bancorp | Logansport Financial vs. First State Financial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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