Correlation Between Games Workshop and ÜSTRA Hannoversche
Can any of the company-specific risk be diversified away by investing in both Games Workshop and ÜSTRA Hannoversche 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 ÜSTRA Hannoversche 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 STRA Hannoversche Verkehrsbetriebe, you can compare the effects of market volatilities on Games Workshop and ÜSTRA Hannoversche 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 ÜSTRA Hannoversche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and ÜSTRA Hannoversche.
Diversification Opportunities for Games Workshop and ÜSTRA Hannoversche
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Games and ÜSTRA is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and STRA Hannoversche Verkehrsbetr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ÜSTRA Hannoversche 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 ÜSTRA Hannoversche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ÜSTRA Hannoversche has no effect on the direction of Games Workshop i.e., Games Workshop and ÜSTRA Hannoversche go up and down completely randomly.
Pair Corralation between Games Workshop and ÜSTRA Hannoversche
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.68 times more return on investment than ÜSTRA Hannoversche. However, Games Workshop Group is 1.48 times less risky than ÜSTRA Hannoversche. It trades about 0.08 of its potential returns per unit of risk. STRA Hannoversche Verkehrsbetriebe is currently generating about -0.01 per unit of risk. If you would invest 11,208 in Games Workshop Group on September 4, 2024 and sell it today you would earn a total of 6,152 from holding Games Workshop Group or generate 54.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Games Workshop Group vs. STRA Hannoversche Verkehrsbetr
Performance |
| Timeline |
| Games Workshop Group |
| ÜSTRA Hannoversche |
Games Workshop and ÜSTRA Hannoversche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and ÜSTRA Hannoversche
The main advantage of trading using opposite Games Workshop and ÜSTRA Hannoversche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, ÜSTRA Hannoversche 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 ÜSTRA Hannoversche will offset losses from the drop in ÜSTRA Hannoversche's long position.| Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc |
| ÜSTRA Hannoversche vs. RELIANCE STEEL AL | ÜSTRA Hannoversche vs. YATRA ONLINE DL 0001 | ÜSTRA Hannoversche vs. COSMOSTEEL HLDGS | ÜSTRA Hannoversche vs. GFL ENVIRONM |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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