Correlation Between GMS and Elutia
Can any of the company-specific risk be diversified away by investing in both GMS and Elutia 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 Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMS Inc and Elutia Inc, you can compare the effects of market volatilities on GMS and Elutia 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 Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMS and Elutia.
Diversification Opportunities for GMS and Elutia
Poor diversification
The 3 months correlation between GMS and Elutia is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GMS Inc and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc 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 Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of GMS i.e., GMS and Elutia go up and down completely randomly.
Pair Corralation between GMS and Elutia
Considering the 90-day investment horizon GMS Inc is expected to generate 0.01 times more return on investment than Elutia. However, GMS Inc is 79.76 times less risky than Elutia. It trades about 0.22 of its potential returns per unit of risk. Elutia Inc is currently generating about -0.2 per unit of risk. If you would invest 10,952 in GMS Inc on June 12, 2025 and sell it today you would earn a total of 44.00 from holding GMS Inc or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
GMS Inc vs. Elutia Inc
Performance |
| Timeline |
| GMS Inc |
| Elutia Inc |
GMS and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMS and Elutia
The main advantage of trading using opposite GMS and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMS position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| GMS vs. Armstrong World Industries | GMS vs. Quanex Building Products | GMS vs. Jeld Wen Holding | GMS vs. Janus International Group |
| Elutia vs. Noble plc | Elutia vs. Major Drilling Group | Elutia vs. ServiceNow | Elutia vs. Energold Drilling Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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