Correlation Between Salesforce and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Games Workshop Group, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Games Workshop.
Diversification Opportunities for Salesforce and Games Workshop
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Games is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce 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 Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and Games Workshop go up and down completely randomly.
Pair Corralation between Salesforce and Games Workshop
Considering the 90-day investment horizon Salesforce is expected to under-perform the Games Workshop. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 1.85 times less risky than Games Workshop. The stock trades about -0.16 of its potential returns per unit of risk. The Games Workshop Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,313,976 in Games Workshop Group on October 25, 2024 and sell it today you would earn a total of 121,024 from holding Games Workshop Group or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Games Workshop Group
Performance |
| Timeline |
| Salesforce |
| Games Workshop Group |
Salesforce and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Games Workshop
The main advantage of trading using opposite Salesforce and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Games Workshop vs. Samsung Electronics Co | Games Workshop vs. Samsung Electronics Co | Games Workshop vs. Toyota Motor Corp | Games Workshop vs. Reliance Industries Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |