Correlation Between Games Workshop and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Games Workshop and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Catalyst Media.
Diversification Opportunities for Games Workshop and Catalyst Media
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Games and Catalyst is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Games Workshop i.e., Games Workshop and Catalyst Media go up and down completely randomly.
Pair Corralation between Games Workshop and Catalyst Media
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.56 times more return on investment than Catalyst Media. However, Games Workshop is 1.56 times more volatile than Catalyst Media Group. It trades about 0.14 of its potential returns per unit of risk. Catalyst Media Group is currently generating about 0.09 per unit of risk. If you would invest 976,692 in Games Workshop Group on September 5, 2024 and sell it today you would earn a total of 438,308 from holding Games Workshop Group or generate 44.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Games Workshop Group vs. Catalyst Media Group
Performance |
| Timeline |
| Games Workshop Group |
| Catalyst Media Group |
Games Workshop and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Catalyst Media
The main advantage of trading using opposite Games Workshop and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Games Workshop vs. Lundin Mining Corp | Games Workshop vs. GoldMining | Games Workshop vs. Air Products Chemicals | Games Workshop vs. United Airlines Holdings |
| Catalyst Media vs. Rightmove PLC | Catalyst Media vs. Bioventix | Catalyst Media vs. VeriSign | Catalyst Media vs. Games Workshop Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |