Correlation Between Public Storage and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Public Storage and Games Workshop 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 Public Storage and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Games Workshop Group, you can compare the effects of market volatilities on Public Storage and Games Workshop 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 Public Storage with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Games Workshop.
Diversification Opportunities for Public Storage and Games Workshop
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Public and Games is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group and Public Storage 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 Public Storage are associated (or correlated) with Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of Public Storage i.e., Public Storage and Games Workshop go up and down completely randomly.
Pair Corralation between Public Storage and Games Workshop
Assuming the 90 days trading horizon Public Storage is expected to generate 0.83 times more return on investment than Games Workshop. However, Public Storage is 1.2 times less risky than Games Workshop. It trades about 0.12 of its potential returns per unit of risk. Games Workshop Group is currently generating about -0.01 per unit of risk. If you would invest 30,275 in Public Storage on December 8, 2024 and sell it today you would earn a total of 935.00 from holding Public Storage or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Storage vs. Games Workshop Group
Performance |
| Timeline |
| Public Storage |
| Games Workshop Group |
Public Storage and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and Games Workshop
The main advantage of trading using opposite Public Storage and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Games Workshop 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 Games Workshop will offset losses from the drop in Games Workshop's long position.| Public Storage vs. Gaztransport et Technigaz | ||
| Public Storage vs. Morgan Advanced Materials | ||
| Public Storage vs. Martin Marietta Materials | ||
| Public Storage vs. CNH Industrial NV |
| Games Workshop vs. Wheaton Precious Metals | ||
| Games Workshop vs. GoldMining | ||
| Games Workshop vs. Atalaya Mining | ||
| Games Workshop vs. Science in Sport |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |