Correlation Between Ecofin Global and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Ecofin Global 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 Ecofin Global and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecofin Global Utilities and Games Workshop Group, you can compare the effects of market volatilities on Ecofin Global 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 Ecofin Global with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecofin Global and Games Workshop.
Diversification Opportunities for Ecofin Global and Games Workshop
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ecofin and Games is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ecofin Global Utilities 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 Ecofin Global 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 Ecofin Global Utilities 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 Ecofin Global i.e., Ecofin Global and Games Workshop go up and down completely randomly.
Pair Corralation between Ecofin Global and Games Workshop
Assuming the 90 days trading horizon Ecofin Global is expected to generate 10.29 times less return on investment than Games Workshop. But when comparing it to its historical volatility, Ecofin Global Utilities is 3.42 times less risky than Games Workshop. It trades about 0.07 of its potential returns per unit of risk. Games Workshop Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,204,000 in Games Workshop Group on September 2, 2024 and sell it today you would earn a total of 209,000 from holding Games Workshop Group or generate 17.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecofin Global Utilities vs. Games Workshop Group
Performance |
| Timeline |
| Ecofin Global Utilities |
| Games Workshop Group |
Ecofin Global and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecofin Global and Games Workshop
The main advantage of trading using opposite Ecofin Global and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecofin Global 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.| Ecofin Global vs. Silvercorp Metals | Ecofin Global vs. Synthomer plc | Ecofin Global vs. Beowulf Mining | Ecofin Global vs. Blackrock World Mining |
| Games Workshop vs. Uniper SE | Games Workshop vs. Mulberry Group PLC | Games Workshop vs. London Security Plc | Games Workshop vs. Triad Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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