Correlation Between Games Workshop and X FAB
Can any of the company-specific risk be diversified away by investing in both Games Workshop and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on Games Workshop and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and X FAB.
Diversification Opportunities for Games Workshop and X FAB
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Games and XFB is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of Games Workshop i.e., Games Workshop and X FAB go up and down completely randomly.
Pair Corralation between Games Workshop and X FAB
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.61 times more return on investment than X FAB. However, Games Workshop Group is 1.64 times less risky than X FAB. It trades about 0.24 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about 0.03 per unit of risk. If you would invest 15,813 in Games Workshop Group on November 3, 2024 and sell it today you would earn a total of 1,497 from holding Games Workshop Group or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Games Workshop Group |
| X FAB Silicon |
Games Workshop and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and X FAB
The main advantage of trading using opposite Games Workshop and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| Games Workshop vs. Siamgas And Petrochemicals | Games Workshop vs. INDO RAMA SYNTHETIC | Games Workshop vs. ARDAGH METAL PACDL 0001 | Games Workshop vs. PRECISION DRILLING P |
| X FAB vs. SIVERS SEMICONDUCTORS AB | X FAB vs. NorAm Drilling AS | X FAB vs. Volkswagen AG | X FAB vs. Darden Restaurants |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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