Correlation Between Games Workshop and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Schweiter Technologies 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 Schweiter Technologies 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 Schweiter Technologies AG, you can compare the effects of market volatilities on Games Workshop and Schweiter Technologies 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 Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Schweiter Technologies.
Diversification Opportunities for Games Workshop and Schweiter Technologies
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Games and Schweiter is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies 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 Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of Games Workshop i.e., Games Workshop and Schweiter Technologies go up and down completely randomly.
Pair Corralation between Games Workshop and Schweiter Technologies
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.34 times more return on investment than Schweiter Technologies. However, Games Workshop is 1.34 times more volatile than Schweiter Technologies AG. It trades about 0.19 of its potential returns per unit of risk. Schweiter Technologies AG is currently generating about 0.03 per unit of risk. If you would invest 1,194,000 in Games Workshop Group on August 31, 2024 and sell it today you would earn a total of 193,000 from holding Games Workshop Group or generate 16.16% 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. Schweiter Technologies AG
Performance |
| Timeline |
| Games Workshop Group |
| Schweiter Technologies |
Games Workshop and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Schweiter Technologies
The main advantage of trading using opposite Games Workshop and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| Games Workshop vs. Intuitive Investments Group | Games Workshop vs. Host Hotels Resorts | Games Workshop vs. FC Investment Trust | Games Workshop vs. Bankers Investment Trust |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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