Correlation Between Games Workshop and Omega Healthcare
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Omega Healthcare 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 Omega Healthcare 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 Omega Healthcare Investors, you can compare the effects of market volatilities on Games Workshop and Omega Healthcare 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 Omega Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Omega Healthcare.
Diversification Opportunities for Games Workshop and Omega Healthcare
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Games and Omega is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Omega Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Healthcare Inv 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 Omega Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Healthcare Inv has no effect on the direction of Games Workshop i.e., Games Workshop and Omega Healthcare go up and down completely randomly.
Pair Corralation between Games Workshop and Omega Healthcare
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.95 times more return on investment than Omega Healthcare. However, Games Workshop Group is 1.06 times less risky than Omega Healthcare. It trades about 0.26 of its potential returns per unit of risk. Omega Healthcare Investors is currently generating about -0.02 per unit of risk. If you would invest 1,308,632 in Games Workshop Group on November 7, 2024 and sell it today you would earn a total of 148,368 from holding Games Workshop Group or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. Omega Healthcare Investors
Performance |
| Timeline |
| Games Workshop Group |
| Omega Healthcare Inv |
Games Workshop and Omega Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Omega Healthcare
The main advantage of trading using opposite Games Workshop and Omega Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Omega Healthcare 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 Omega Healthcare will offset losses from the drop in Omega Healthcare's long position.| Games Workshop vs. Dalata Hotel Group | Games Workshop vs. Xeros Technology Group | Games Workshop vs. Polar Capital Technology | Games Workshop vs. Ashtead Technology Holdings |
| Omega Healthcare vs. STMicroelectronics NV | Omega Healthcare vs. Rheinmetall AG | Omega Healthcare vs. Coeur Mining | Omega Healthcare vs. MTI Wireless Edge |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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