Correlation Between Games Workshop and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals, you can compare the effects of market volatilities on Games Workshop and Silvercorp Metals 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 Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Silvercorp Metals.
Diversification Opportunities for Games Workshop and Silvercorp Metals
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and Silvercorp is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals 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 Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Games Workshop i.e., Games Workshop and Silvercorp Metals go up and down completely randomly.
Pair Corralation between Games Workshop and Silvercorp Metals
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.58 times more return on investment than Silvercorp Metals. However, Games Workshop Group is 1.73 times less risky than Silvercorp Metals. It trades about 0.11 of its potential returns per unit of risk. Silvercorp Metals is currently generating about 0.01 per unit of risk. If you would invest 947,199 in Games Workshop Group on September 18, 2024 and sell it today you would earn a total of 407,801 from holding Games Workshop Group or generate 43.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.22% |
| Values | Daily Returns |
Games Workshop Group vs. Silvercorp Metals
Performance |
| Timeline |
| Games Workshop Group |
| Silvercorp Metals |
Games Workshop and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Silvercorp Metals
The main advantage of trading using opposite Games Workshop and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| Games Workshop vs. Catalyst Media Group | Games Workshop vs. CATLIN GROUP | Games Workshop vs. Tamburi Investment Partners | Games Workshop vs. Magnora ASA |
| Silvercorp Metals vs. Ecclesiastical Insurance Office | Silvercorp Metals vs. Wheaton Precious Metals | Silvercorp Metals vs. Games Workshop Group | Silvercorp Metals vs. METALL ZUG AG |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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