Correlation Between Fonix Mobile and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Fonix Mobile 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 Fonix Mobile and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonix Mobile plc and Games Workshop Group, you can compare the effects of market volatilities on Fonix Mobile 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 Fonix Mobile with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonix Mobile and Games Workshop.
Diversification Opportunities for Fonix Mobile and Games Workshop
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fonix and Games is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile 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 Fonix Mobile 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 Fonix Mobile 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 Fonix Mobile i.e., Fonix Mobile and Games Workshop go up and down completely randomly.
Pair Corralation between Fonix Mobile and Games Workshop
Assuming the 90 days trading horizon Fonix Mobile is expected to generate 2.29 times less return on investment than Games Workshop. In addition to that, Fonix Mobile is 1.19 times more volatile than Games Workshop Group. It trades about 0.03 of its total potential returns per unit of risk. Games Workshop Group is currently generating about 0.07 per unit of volatility. If you would invest 874,118 in Games Workshop Group on August 31, 2024 and sell it today you would earn a total of 512,882 from holding Games Workshop Group or generate 58.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Fonix Mobile plc vs. Games Workshop Group
Performance |
| Timeline |
| Fonix Mobile plc |
| Games Workshop Group |
Fonix Mobile and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonix Mobile and Games Workshop
The main advantage of trading using opposite Fonix Mobile and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonix Mobile 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.| Fonix Mobile vs. CVR Energy | Fonix Mobile vs. Viridian Therapeutics | Fonix Mobile vs. Nationwide Building Society | Fonix Mobile vs. News Corp Cl |
| Games Workshop vs. Intuitive Investments Group | Games Workshop vs. Host Hotels Resorts | Games Workshop vs. FC Investment Trust | Games Workshop vs. Bankers Investment Trust |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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