Correlation Between GDI Integrated and Information Services

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

By analyzing existing cross correlation between GDI Integrated and Information Services, you can compare the effects of market volatilities on GDI Integrated and Information Services 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 GDI Integrated with a short position of Information Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Integrated and Information Services.

Diversification Opportunities for GDI Integrated and Information Services

-0.35

Correlation Coefficient

GDI Integrated  Information Services

Very good diversification

The 3 months correlation between GDI and Information is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding GDI Integrated and Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services and GDI Integrated 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 GDI Integrated are associated (or correlated) with Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of GDI Integrated i.e., GDI Integrated and Information Services go up and down completely randomly.

Pair Corralation between GDI Integrated and Information Services

Assuming the 90 days trading horizon GDI Integrated is expected to under-perform the Information Services. In addition to that, GDI Integrated is 2.73 times more volatile than Information Services. It trades about -0.09 of its total potential returns per unit of risk. Information Services is currently generating about 0.14 per unit of volatility. If you would invest  2,954  in Information Services on May 26, 2025 and sell it today you would earn a total of  266.00  from holding Information Services or generate 9.0% return on investment over 90 days.

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

GDI Integrated  vs.  Information Services

GDI Integrated

Risk-Adjusted Performance

Weakest

Over the last 90 days GDI Integrated 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 forward indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Information Services

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Information Services are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Information Services may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with GDI Integrated and Information Services

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

The idea behind GDI Integrated and Information Services 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.