Correlation Between Games Workshop and DAX Index
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By analyzing existing cross correlation between Games Workshop Group and DAX Index, you can compare the effects of market volatilities on Games Workshop and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and DAX Index.
Diversification Opportunities for Games Workshop and DAX Index
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Games and DAX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Games Workshop i.e., Games Workshop and DAX Index go up and down completely randomly.
Pair Corralation between Games Workshop and DAX Index
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 2.7 times more return on investment than DAX Index. However, Games Workshop is 2.7 times more volatile than DAX Index. It trades about 0.07 of its potential returns per unit of risk. DAX Index is currently generating about 0.09 per unit of risk. If you would invest 9,740 in Games Workshop Group on November 8, 2024 and sell it today you would earn a total of 7,700 from holding Games Workshop Group or generate 79.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. DAX Index
Performance |
| Timeline |
Games Workshop and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Games Workshop Group
Pair trading matchups for Games Workshop
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Games Workshop and DAX Index
The main advantage of trading using opposite Games Workshop and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Games Workshop vs. DISTRICT METALS | Games Workshop vs. Monster Beverage Corp | Games Workshop vs. FIREWEED METALS P | Games Workshop vs. Zijin Mining Group |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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