Correlation Between Gulf Island and Winmark

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

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

Diversification Opportunities for Gulf Island and Winmark

-0.53

Correlation Coefficient

Gulf Island  Winmark

Excellent diversification

The 3 months correlation between Gulf and Winmark is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gulf Island Fabrication and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark and Gulf Island 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 Gulf Island Fabrication are associated (or correlated) with Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of Gulf Island i.e., Gulf Island and Winmark go up and down completely randomly.

Pair Corralation between Gulf Island and Winmark

Given the investment horizon of 90 days Gulf Island Fabrication is expected to generate 0.99 times more return on investment than Winmark. However, Gulf Island Fabrication is 1.01 times less risky than Winmark. It trades about 0.02 of its potential returns per unit of risk. Winmark is currently generating about 0.02 per unit of risk. If you would invest  679.00  in Gulf Island Fabrication on May 4, 2025 and sell it today you would earn a total of  8.00  from holding Gulf Island Fabrication or generate 1.18% return on investment over 90 days.

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

Gulf Island Fabrication  vs.  Winmark

Gulf Island Fabrication

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gulf Island Fabrication are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Gulf Island is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Winmark

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Winmark are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Winmark is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gulf Island and Winmark

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

The idea behind Gulf Island Fabrication and Winmark 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.