Correlation Between Games Workshop and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Canon Marketing 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 Games Workshop and Canon Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Games Workshop Group and Canon Marketing Japan, you can compare the effects of market volatilities on Games Workshop and Canon Marketing 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 Games Workshop with a short position of Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Canon Marketing.
Diversification Opportunities for Games Workshop and Canon Marketing
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Games and Canon is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan and Games Workshop 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 Games Workshop Group are associated (or correlated) with Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Games Workshop i.e., Games Workshop and Canon Marketing go up and down completely randomly.
Pair Corralation between Games Workshop and Canon Marketing
Assuming the 90 days horizon Games Workshop Group is expected to generate 1.32 times more return on investment than Canon Marketing. However, Games Workshop is 1.32 times more volatile than Canon Marketing Japan. It trades about 0.06 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.06 per unit of risk. If you would invest 12,223 in Games Workshop Group on September 12, 2024 and sell it today you would earn a total of 4,817 from holding Games Workshop Group or generate 39.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Games Workshop Group vs. Canon Marketing Japan
Performance |
| Timeline |
| Games Workshop Group |
| Canon Marketing Japan |
Games Workshop and Canon Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Canon Marketing
The main advantage of trading using opposite Games Workshop and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Canon Marketing 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 Canon Marketing will offset losses from the drop in Canon Marketing's long position.| Games Workshop vs. Canon Marketing Japan | Games Workshop vs. Check Point Software | Games Workshop vs. CarsalesCom | Games Workshop vs. CARSALESCOM |
| Canon Marketing vs. Gol Intelligent Airlines | Canon Marketing vs. New Residential Investment | Canon Marketing vs. REGAL ASIAN INVESTMENTS | Canon Marketing vs. Southwest Airlines Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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