Correlation Between Cboe UK and Games Workshop
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By analyzing existing cross correlation between Cboe UK Consumer and Games Workshop Group, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Games Workshop.
Diversification Opportunities for Cboe UK and Games Workshop
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cboe and Games is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Games Workshop go up and down completely randomly.
Pair Corralation between Cboe UK and Games Workshop
Assuming the 90 days trading horizon Cboe UK is expected to generate 2.11 times less return on investment than Games Workshop. But when comparing it to its historical volatility, Cboe UK Consumer is 2.26 times less risky than Games Workshop. It trades about 0.16 of its potential returns per unit of risk. Games Workshop Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 944,742 in Games Workshop Group on August 25, 2024 and sell it today you would earn a total of 428,258 from holding Games Workshop Group or generate 45.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.47% |
| Values | Daily Returns |
Cboe UK Consumer vs. Games Workshop Group
Performance |
| Timeline |
Cboe UK and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Games Workshop Group
Pair trading matchups for Games Workshop
Pair Trading with Cboe UK and Games Workshop
The main advantage of trading using opposite Cboe UK and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. FC Investment Trust | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. The Mercantile Investment |
| Games Workshop vs. SupplyMe Capital PLC | Games Workshop vs. FuelCell Energy | Games Workshop vs. Grand Vision Media | Games Workshop vs. DG Innovate 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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