Correlation Between Games Workshop and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Dalata Hotel 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 Dalata Hotel 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 Dalata Hotel Group, you can compare the effects of market volatilities on Games Workshop and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Dalata Hotel.
Diversification Opportunities for Games Workshop and Dalata Hotel
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Games and Dalata is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Games Workshop i.e., Games Workshop and Dalata Hotel go up and down completely randomly.
Pair Corralation between Games Workshop and Dalata Hotel
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.97 times more return on investment than Dalata Hotel. However, Games Workshop Group is 1.03 times less risky than Dalata Hotel. It trades about 0.3 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.1 per unit of risk. If you would invest 15,665 in Games Workshop Group on November 7, 2024 and sell it today you would earn a total of 1,785 from holding Games Workshop Group or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Games Workshop Group vs. Dalata Hotel Group
Performance |
| Timeline |
| Games Workshop Group |
| Dalata Hotel Group |
Games Workshop and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Dalata Hotel
The main advantage of trading using opposite Games Workshop and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| Games Workshop vs. COMBA TELECOM SYST | Games Workshop vs. Highlight Communications AG | Games Workshop vs. Spirent Communications plc | Games Workshop vs. SK TELECOM TDADR |
| Dalata Hotel vs. FONIX MOBILE PLC | Dalata Hotel vs. Tower One Wireless | Dalata Hotel vs. Datadog | Dalata Hotel vs. SILVER BULLET DATA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |