Correlation Between Games Workshop and Bollor SE
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Bollor SE 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 Bollor SE 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 Bollor SE, you can compare the effects of market volatilities on Games Workshop and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Bollor SE.
Diversification Opportunities for Games Workshop and Bollor SE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and Bollor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of Games Workshop i.e., Games Workshop and Bollor SE go up and down completely randomly.
Pair Corralation between Games Workshop and Bollor SE
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.77 times more return on investment than Bollor SE. However, Games Workshop is 1.77 times more volatile than Bollor SE. It trades about 0.15 of its potential returns per unit of risk. Bollor SE is currently generating about 0.02 per unit of risk. If you would invest 10,902 in Games Workshop Group on September 15, 2024 and sell it today you would earn a total of 5,858 from holding Games Workshop Group or generate 53.73% 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. Bollor SE
Performance |
| Timeline |
| Games Workshop Group |
| Bollor SE |
Games Workshop and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Bollor SE
The main advantage of trading using opposite Games Workshop and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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