Correlation Between Games Workshop and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both Games Workshop and CITY OFFICE 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 CITY OFFICE 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 CITY OFFICE REIT, you can compare the effects of market volatilities on Games Workshop and CITY OFFICE 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 CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and CITY OFFICE.
Diversification Opportunities for Games Workshop and CITY OFFICE
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Games and CITY is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT 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 CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of Games Workshop i.e., Games Workshop and CITY OFFICE go up and down completely randomly.
Pair Corralation between Games Workshop and CITY OFFICE
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.73 times more return on investment than CITY OFFICE. However, Games Workshop Group is 1.36 times less risky than CITY OFFICE. It trades about 0.13 of its potential returns per unit of risk. CITY OFFICE REIT is currently generating about 0.06 per unit of risk. If you would invest 11,040 in Games Workshop Group on September 3, 2024 and sell it today you would earn a total of 5,860 from holding Games Workshop Group or generate 53.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. CITY OFFICE REIT
Performance |
| Timeline |
| Games Workshop Group |
| CITY OFFICE REIT |
Games Workshop and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and CITY OFFICE
The main advantage of trading using opposite Games Workshop and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, CITY OFFICE 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.| Games Workshop vs. TERADATA | Games Workshop vs. Marie Brizard Wine | Games Workshop vs. Haverty Furniture Companies | Games Workshop vs. DATANG INTL POW |
| CITY OFFICE vs. Boston Properties | CITY OFFICE vs. COUSINS PTIES INC | CITY OFFICE vs. Office Properties Income | CITY OFFICE vs. CREMECOMTRSBI DL 001 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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