Correlation Between Games Workshop and Newmont Corp
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Newmont Corp 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 Newmont Corp 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 Newmont Corp, you can compare the effects of market volatilities on Games Workshop and Newmont Corp 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 Newmont Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Newmont Corp.
Diversification Opportunities for Games Workshop and Newmont Corp
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Games and Newmont is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Newmont Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont 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 Newmont Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Corp has no effect on the direction of Games Workshop i.e., Games Workshop and Newmont Corp go up and down completely randomly.
Pair Corralation between Games Workshop and Newmont Corp
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.83 times more return on investment than Newmont Corp. However, Games Workshop Group is 1.21 times less risky than Newmont Corp. It trades about 0.06 of its potential returns per unit of risk. Newmont Corp is currently generating about -0.01 per unit of risk. If you would invest 816,486 in Games Workshop Group on September 24, 2024 and sell it today you would earn a total of 483,514 from holding Games Workshop Group or generate 59.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.2% |
| Values | Daily Returns |
Games Workshop Group vs. Newmont Corp
Performance |
| Timeline |
| Games Workshop Group |
| Newmont Corp |
Games Workshop and Newmont Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Newmont Corp
The main advantage of trading using opposite Games Workshop and Newmont Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Newmont Corp 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 Newmont Corp will offset losses from the drop in Newmont Corp's long position.| Games Workshop vs. Silvercorp Metals | Games Workshop vs. Amedeo Air Four | Games Workshop vs. Mindflair Plc | Games Workshop vs. Alaska Air Group |
| Newmont Corp vs. Uniper SE | Newmont Corp vs. Mulberry Group PLC | Newmont Corp vs. London Security Plc | Newmont Corp vs. Triad Group PLC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |