Correlation Between CI GAMES and Games Workshop
Can any of the company-specific risk be diversified away by investing in both CI GAMES 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 CI GAMES and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI GAMES SA and Games Workshop Group, you can compare the effects of market volatilities on CI GAMES 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 CI GAMES with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Games Workshop.
Diversification Opportunities for CI GAMES and Games Workshop
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CI7 and Games is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA 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 CI GAMES 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 CI GAMES SA 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 CI GAMES i.e., CI GAMES and Games Workshop go up and down completely randomly.
Pair Corralation between CI GAMES and Games Workshop
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the Games Workshop. In addition to that, CI GAMES is 2.04 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 0.1 per unit of volatility. If you would invest 10,242 in Games Workshop Group on September 3, 2024 and sell it today you would earn a total of 7,118 from holding Games Workshop Group or generate 69.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Games Workshop Group
Performance |
| Timeline |
| CI GAMES SA |
| Games Workshop Group |
CI GAMES and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Games Workshop
The main advantage of trading using opposite CI GAMES and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES 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.| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Take Two Interactive Software |
| Games Workshop vs. TERADATA | Games Workshop vs. Marie Brizard Wine | Games Workshop vs. Haverty Furniture Companies | Games Workshop vs. DATANG INTL POW |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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