Correlation Between Sempra and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Sempra 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 Sempra and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sempra and Games Workshop Group, you can compare the effects of market volatilities on Sempra 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 Sempra with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sempra and Games Workshop.
Diversification Opportunities for Sempra and Games Workshop
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sempra and Games is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sempra 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 Sempra 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 Sempra 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 Sempra i.e., Sempra and Games Workshop go up and down completely randomly.
Pair Corralation between Sempra and Games Workshop
Assuming the 90 days trading horizon Sempra is expected to under-perform the Games Workshop. But the stock apears to be less risky and, when comparing its historical volatility, Sempra is 3.47 times less risky than Games Workshop. The stock trades about -0.1 of its potential returns per unit of risk. The Games Workshop Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,187,000 in Games Workshop Group on September 13, 2024 and sell it today you would earn a total of 228,000 from holding Games Workshop Group or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sempra vs. Games Workshop Group
Performance |
| Timeline |
| Sempra |
| Games Workshop Group |
Sempra and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sempra and Games Workshop
The main advantage of trading using opposite Sempra and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sempra 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.| Sempra vs. Playtech Plc | Sempra vs. Gaztransport et Technigaz | Sempra vs. AIM ImmunoTech | Sempra vs. Young Cos Brewery |
| Games Workshop vs. Fonix Mobile plc | Games Workshop vs. MTI Wireless Edge | Games Workshop vs. Summit Materials Cl | Games Workshop vs. Zegona Communications Plc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |