Correlation Between Games Workshop and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Games Workshop and CI GAMES 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 CI GAMES 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 CI GAMES SA, you can compare the effects of market volatilities on Games Workshop and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and CI GAMES.
Diversification Opportunities for Games Workshop and CI GAMES
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and CI7 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of Games Workshop i.e., Games Workshop and CI GAMES go up and down completely randomly.
Pair Corralation between Games Workshop and CI GAMES
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.49 times more return on investment than CI GAMES. However, Games Workshop Group is 2.04 times less risky than CI GAMES. It trades about 0.1 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.02 per unit of risk. If you would invest 10,242 in Games Workshop Group on September 3, 2024 and sell it today you would earn a total of 7,118 from holding Games Workshop Group or generate 69.5% 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. CI GAMES SA
Performance |
| Timeline |
| Games Workshop Group |
| CI GAMES SA |
Games Workshop and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and CI GAMES
The main advantage of trading using opposite Games Workshop and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES'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 |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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