Correlation Between Games Workshop and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both Games Workshop and GAMING FAC 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 GAMING FAC 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 GAMING FAC SA, you can compare the effects of market volatilities on Games Workshop and GAMING FAC 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 GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and GAMING FAC.
Diversification Opportunities for Games Workshop and GAMING FAC
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Games and GAMING is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA 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 GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of Games Workshop i.e., Games Workshop and GAMING FAC go up and down completely randomly.
Pair Corralation between Games Workshop and GAMING FAC
Assuming the 90 days trading horizon Games Workshop Group is expected to under-perform the GAMING FAC. But the stock apears to be less risky and, when comparing its historical volatility, Games Workshop Group is 2.77 times less risky than GAMING FAC. The stock trades about -0.08 of its potential returns per unit of risk. The GAMING FAC SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 171.00 in GAMING FAC SA on August 24, 2024 and sell it today you would lose (7.00) from holding GAMING FAC SA or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Games Workshop Group vs. GAMING FAC SA
Performance |
| Timeline |
| Games Workshop Group |
| GAMING FAC SA |
Games Workshop and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and GAMING FAC
The main advantage of trading using opposite Games Workshop and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.| Games Workshop vs. NISSAN CHEMICAL IND | Games Workshop vs. LG Display Co | Games Workshop vs. WESTLAKE CHEMICAL | Games Workshop vs. Sanyo Chemical Industries |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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