Correlation Between Games Workshop and LIFENET INSURANCE
Can any of the company-specific risk be diversified away by investing in both Games Workshop and LIFENET 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 LIFENET 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 LIFENET INSURANCE CO, you can compare the effects of market volatilities on Games Workshop and LIFENET 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 LIFENET INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and LIFENET INSURANCE.
Diversification Opportunities for Games Workshop and LIFENET INSURANCE
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Games and LIFENET is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and LIFENET INSURANCE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFENET INSURANCE 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 LIFENET INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFENET INSURANCE has no effect on the direction of Games Workshop i.e., Games Workshop and LIFENET INSURANCE go up and down completely randomly.
Pair Corralation between Games Workshop and LIFENET INSURANCE
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.99 times more return on investment than LIFENET INSURANCE. However, Games Workshop is 1.99 times more volatile than LIFENET INSURANCE CO. It trades about 0.21 of its potential returns per unit of risk. LIFENET INSURANCE CO is currently generating about 0.13 per unit of risk. If you would invest 14,170 in Games Workshop Group on September 5, 2024 and sell it today you would earn a total of 2,970 from holding Games Workshop Group or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. LIFENET INSURANCE CO
Performance |
| Timeline |
| Games Workshop Group |
| LIFENET INSURANCE |
Games Workshop and LIFENET INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and LIFENET INSURANCE
The main advantage of trading using opposite Games Workshop and LIFENET INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, LIFENET 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 LIFENET INSURANCE will offset losses from the drop in LIFENET INSURANCE's long position.| Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc |
| LIFENET INSURANCE vs. Wstenrot Wrttembergische AG | LIFENET INSURANCE vs. Gold Road Resources | LIFENET INSURANCE vs. Sumitomo Mitsui Construction | LIFENET INSURANCE vs. Darling Ingredients |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |