Correlation Between Bloomsbury Publishing and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing 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 Bloomsbury Publishing and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and Games Workshop Group, you can compare the effects of market volatilities on Bloomsbury Publishing 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 Bloomsbury Publishing with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and Games Workshop.
Diversification Opportunities for Bloomsbury Publishing and Games Workshop
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloomsbury and Games is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc 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 Bloomsbury Publishing 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 Bloomsbury Publishing Plc 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 Bloomsbury Publishing i.e., Bloomsbury Publishing and Games Workshop go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and Games Workshop
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to under-perform the Games Workshop. In addition to that, Bloomsbury Publishing is 1.14 times more volatile than Games Workshop Group. It trades about -0.02 of its total potential returns per unit of risk. Games Workshop Group is currently generating about 0.26 per unit of volatility. If you would invest 1,308,632 in Games Workshop Group on November 7, 2024 and sell it today you would earn a total of 148,368 from holding Games Workshop Group or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bloomsbury Publishing Plc vs. Games Workshop Group
Performance |
| Timeline |
| Bloomsbury Publishing Plc |
| Games Workshop Group |
Bloomsbury Publishing and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomsbury Publishing and Games Workshop
The main advantage of trading using opposite Bloomsbury Publishing and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing 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.| Bloomsbury Publishing vs. Cornish Metals | Bloomsbury Publishing vs. European Metals Holdings | Bloomsbury Publishing vs. National Beverage Corp | Bloomsbury Publishing vs. Europa Metals |
| Games Workshop vs. Ecclesiastical Insurance Office | Games Workshop vs. International Consolidated Airlines | Games Workshop vs. Spirent Communications plc | Games Workshop vs. Zoom Video Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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