Correlation Between Games Workshop and CleanTech Lithium
Can any of the company-specific risk be diversified away by investing in both Games Workshop and CleanTech Lithium 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 CleanTech Lithium 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 CleanTech Lithium plc, you can compare the effects of market volatilities on Games Workshop and CleanTech Lithium 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 CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and CleanTech Lithium.
Diversification Opportunities for Games Workshop and CleanTech Lithium
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Games and CleanTech is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and CleanTech Lithium plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium plc 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 CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium plc has no effect on the direction of Games Workshop i.e., Games Workshop and CleanTech Lithium go up and down completely randomly.
Pair Corralation between Games Workshop and CleanTech Lithium
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.49 times more return on investment than CleanTech Lithium. However, Games Workshop Group is 2.03 times less risky than CleanTech Lithium. It trades about 0.29 of its potential returns per unit of risk. CleanTech Lithium plc is currently generating about 0.05 per unit of risk. If you would invest 1,296,833 in Games Workshop Group on November 8, 2024 and sell it today you would earn a total of 165,167 from holding Games Workshop Group or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Games Workshop Group vs. CleanTech Lithium plc
Performance |
| Timeline |
| Games Workshop Group |
| CleanTech Lithium plc |
Games Workshop and CleanTech Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and CleanTech Lithium
The main advantage of trading using opposite Games Workshop and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, CleanTech Lithium 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 CleanTech Lithium will offset losses from the drop in CleanTech Lithium's long position.| Games Workshop vs. Ecclesiastical Insurance Office | Games Workshop vs. JLEN Environmental Assets | Games Workshop vs. Rosslyn Data Technologies | Games Workshop vs. Hochschild Mining plc |
| CleanTech Lithium vs. Porvair plc | CleanTech Lithium vs. Silver Bullet Data | CleanTech Lithium vs. United Airlines Holdings | CleanTech Lithium vs. Extra Space Storage |
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
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |