Correlation Between Games Workshop and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Sixt Leasing 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 Sixt Leasing 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 Sixt Leasing SE, you can compare the effects of market volatilities on Games Workshop and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Sixt Leasing.
Diversification Opportunities for Games Workshop and Sixt Leasing
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Games and Sixt is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of Games Workshop i.e., Games Workshop and Sixt Leasing go up and down completely randomly.
Pair Corralation between Games Workshop and Sixt Leasing
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.65 times more return on investment than Sixt Leasing. However, Games Workshop is 1.65 times more volatile than Sixt Leasing SE. It trades about 0.13 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.06 per unit of risk. If you would invest 11,503 in Games Workshop Group on September 3, 2024 and sell it today you would earn a total of 5,397 from holding Games Workshop Group or generate 46.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. Sixt Leasing SE
Performance |
| Timeline |
| Games Workshop Group |
| Sixt Leasing SE |
Games Workshop and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Sixt Leasing
The main advantage of trading using opposite Games Workshop and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| Games Workshop vs. TERADATA | Games Workshop vs. Marie Brizard Wine | Games Workshop vs. Haverty Furniture Companies | Games Workshop vs. DATANG INTL POW |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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