Correlation Between GDS Holdings and Maximus

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

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

Diversification Opportunities for GDS Holdings and Maximus

0.07

Correlation Coefficient

GDS Holdings  Maximus

Significant diversification

The 3 months correlation between GDS and Maximus is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding GDS Holdings and Maximus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maximus and GDS Holdings 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 GDS Holdings are associated (or correlated) with Maximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maximus has no effect on the direction of GDS Holdings i.e., GDS Holdings and Maximus go up and down completely randomly.

Pair Corralation between GDS Holdings and Maximus

Considering the 90-day investment horizon GDS Holdings is expected to generate 1.96 times more return on investment than Maximus. However, GDS Holdings is 1.96 times more volatile than Maximus. It trades about 0.1 of its potential returns per unit of risk. Maximus is currently generating about 0.08 per unit of risk. If you would invest  2,779  in GDS Holdings on May 5, 2025 and sell it today you would earn a total of  633.00  from holding GDS Holdings or generate 22.78% return on investment over 90 days.

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

GDS Holdings  vs.  Maximus

GDS Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GDS Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, GDS Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Maximus

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Maximus are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Maximus may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with GDS Holdings and Maximus

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

The idea behind GDS Holdings and Maximus 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.