Correlation Between Games Workshop and Aqua America
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Aqua America 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 Aqua America 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 Aqua America, you can compare the effects of market volatilities on Games Workshop and Aqua America 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 Aqua America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Aqua America.
Diversification Opportunities for Games Workshop and Aqua America
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Games and Aqua is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Aqua America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqua America 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 Aqua America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqua America has no effect on the direction of Games Workshop i.e., Games Workshop and Aqua America go up and down completely randomly.
Pair Corralation between Games Workshop and Aqua America
If you would invest 15,813 in Games Workshop Group on November 3, 2024 and sell it today you would earn a total of 1,497 from holding Games Workshop Group or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Games Workshop Group vs. Aqua America
Performance |
| Timeline |
| Games Workshop Group |
| Aqua America |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Games Workshop and Aqua America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Aqua America
The main advantage of trading using opposite Games Workshop and Aqua America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Aqua America 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 Aqua America will offset losses from the drop in Aqua America's long position.| Games Workshop vs. Siamgas And Petrochemicals | Games Workshop vs. INDO RAMA SYNTHETIC | Games Workshop vs. ARDAGH METAL PACDL 0001 | Games Workshop vs. PRECISION DRILLING P |
| Aqua America vs. STEEL DYNAMICS | Aqua America vs. SENECA FOODS A | Aqua America vs. TOMBADOR IRON LTD | Aqua America vs. Khiron Life Sciences |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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