Correlation Between Games Workshop and Grenke AG
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Grenke AG 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 Grenke AG 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 Grenke AG, you can compare the effects of market volatilities on Games Workshop and Grenke AG 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 Grenke AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Grenke AG.
Diversification Opportunities for Games Workshop and Grenke AG
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Games and Grenke is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Grenke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenke AG 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 Grenke AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenke AG has no effect on the direction of Games Workshop i.e., Games Workshop and Grenke AG go up and down completely randomly.
Pair Corralation between Games Workshop and Grenke AG
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.86 times more return on investment than Grenke AG. However, Games Workshop Group is 1.16 times less risky than Grenke AG. It trades about 0.07 of its potential returns per unit of risk. Grenke AG is currently generating about 0.0 per unit of risk. If you would invest 8,877 in Games Workshop Group on September 14, 2024 and sell it today you would earn a total of 8,053 from holding Games Workshop Group or generate 90.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Games Workshop Group vs. Grenke AG
Performance |
| Timeline |
| Games Workshop Group |
| Grenke AG |
Games Workshop and Grenke AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Grenke AG
The main advantage of trading using opposite Games Workshop and Grenke AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Grenke AG 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 Grenke AG will offset losses from the drop in Grenke AG's long position.| Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc |
| Grenke AG vs. DEVRY EDUCATION GRP | Grenke AG vs. Games Workshop Group | Grenke AG vs. RYU Apparel | Grenke AG vs. Media and Games |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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