Correlation Between Games Workshop and Universal Display
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Universal Display 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 Universal Display 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 Universal Display Corp, you can compare the effects of market volatilities on Games Workshop and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Universal Display.
Diversification Opportunities for Games Workshop and Universal Display
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Games and Universal is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Universal Display Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display Corp 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display Corp has no effect on the direction of Games Workshop i.e., Games Workshop and Universal Display go up and down completely randomly.
Pair Corralation between Games Workshop and Universal Display
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.85 times more return on investment than Universal Display. However, Games Workshop Group is 1.18 times less risky than Universal Display. It trades about 0.29 of its potential returns per unit of risk. Universal Display Corp is currently generating about -0.11 per unit of risk. If you would invest 1,296,833 in Games Workshop Group on November 8, 2024 and sell it today you would earn a total of 165,167 from holding Games Workshop Group or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Games Workshop Group vs. Universal Display Corp
Performance |
| Timeline |
| Games Workshop Group |
| Universal Display Corp |
Games Workshop and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Universal Display
The main advantage of trading using opposite Games Workshop and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Games Workshop vs. Ecclesiastical Insurance Office | Games Workshop vs. International Consolidated Airlines | Games Workshop vs. Spirent Communications plc | Games Workshop vs. Zoom Video Communications |
| Universal Display vs. New Residential Investment | Universal Display vs. Canadian General Investments | Universal Display vs. OneSavings Bank PLC | Universal Display vs. Smithson Investment Trust |
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.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |