Correlation Between Games Workshop and AP Moeller
Can any of the company-specific risk be diversified away by investing in both Games Workshop and AP Moeller 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 AP Moeller 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 AP Moeller Maersk AS, you can compare the effects of market volatilities on Games Workshop and AP Moeller 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 AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and AP Moeller.
Diversification Opportunities for Games Workshop and AP Moeller
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Games and 0O76 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and AP Moeller Maersk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller Maersk 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 AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller Maersk has no effect on the direction of Games Workshop i.e., Games Workshop and AP Moeller go up and down completely randomly.
Pair Corralation between Games Workshop and AP Moeller
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.02 times more return on investment than AP Moeller. However, Games Workshop is 1.02 times more volatile than AP Moeller Maersk AS. It trades about 0.17 of its potential returns per unit of risk. AP Moeller Maersk AS is currently generating about -0.3 per unit of risk. If you would invest 1,312,982 in Games Workshop Group on October 24, 2024 and sell it today you would earn a total of 85,018 from holding Games Workshop Group or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Games Workshop Group vs. AP Moeller Maersk AS
Performance |
| Timeline |
| Games Workshop Group |
| AP Moeller Maersk |
Games Workshop and AP Moeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and AP Moeller
The main advantage of trading using opposite Games Workshop and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, AP Moeller 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 AP Moeller will offset losses from the drop in AP Moeller's long position.| Games Workshop vs. Playtech Plc | Games Workshop vs. JD Sports Fashion | Games Workshop vs. PPHE Hotel Group | Games Workshop vs. MyHealthChecked Plc |
| AP Moeller vs. Sydbank | AP Moeller vs. Universal Display Corp | AP Moeller vs. Games Workshop Group | AP Moeller vs. Verizon Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |