Correlation Between Games Workshop and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Games Workshop and QBE Insurance 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 QBE Insurance 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 QBE Insurance Group, you can compare the effects of market volatilities on Games Workshop and QBE Insurance 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 QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and QBE Insurance.
Diversification Opportunities for Games Workshop and QBE Insurance
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Games and QBE is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and QBE Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE Insurance Group 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 QBE Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE Insurance Group has no effect on the direction of Games Workshop i.e., Games Workshop and QBE Insurance go up and down completely randomly.
Pair Corralation between Games Workshop and QBE Insurance
Assuming the 90 days horizon Games Workshop is expected to generate 1.1 times less return on investment than QBE Insurance. In addition to that, Games Workshop is 2.13 times more volatile than QBE Insurance Group. It trades about 0.22 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.52 per unit of volatility. If you would invest 1,030 in QBE Insurance Group on September 1, 2024 and sell it today you would earn a total of 190.00 from holding QBE Insurance Group or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Games Workshop Group vs. QBE Insurance Group
Performance |
| Timeline |
| Games Workshop Group |
| QBE Insurance Group |
Games Workshop and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and QBE Insurance
The main advantage of trading using opposite Games Workshop and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, QBE Insurance 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 QBE Insurance will offset losses from the drop in QBE Insurance's long position.| Games Workshop vs. SLR Investment Corp | Games Workshop vs. BROADSTNET LEADL 00025 | Games Workshop vs. TRAINLINE PLC LS | Games Workshop vs. REGAL ASIAN INVESTMENTS |
| QBE Insurance vs. Sumitomo Rubber Industries | QBE Insurance vs. SANOK RUBBER ZY | QBE Insurance vs. Applied Materials | QBE Insurance vs. NEWELL RUBBERMAID |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |