Correlation Between Games Workshop and TTW Public
Can any of the company-specific risk be diversified away by investing in both Games Workshop and TTW Public 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 TTW Public 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 TTW Public, you can compare the effects of market volatilities on Games Workshop and TTW Public 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 TTW Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and TTW Public.
Diversification Opportunities for Games Workshop and TTW Public
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Games and TTW is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and TTW Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTW Public 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 TTW Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTW Public has no effect on the direction of Games Workshop i.e., Games Workshop and TTW Public go up and down completely randomly.
Pair Corralation between Games Workshop and TTW Public
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.02 times more return on investment than TTW Public. However, Games Workshop is 1.02 times more volatile than TTW Public. It trades about 0.05 of its potential returns per unit of risk. TTW Public is currently generating about 0.02 per unit of risk. If you would invest 12,124 in Games Workshop Group on September 12, 2024 and sell it today you would earn a total of 4,526 from holding Games Workshop Group or generate 37.33% 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. TTW Public
Performance |
| Timeline |
| Games Workshop Group |
| TTW Public |
Games Workshop and TTW Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and TTW Public
The main advantage of trading using opposite Games Workshop and TTW Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, TTW Public 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 TTW Public will offset losses from the drop in TTW Public'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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