Correlation Between Games Workshop and 4Imprint Group
Can any of the company-specific risk be diversified away by investing in both Games Workshop and 4Imprint Group 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 4Imprint Group 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 4Imprint Group Plc, you can compare the effects of market volatilities on Games Workshop and 4Imprint Group 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 4Imprint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and 4Imprint Group.
Diversification Opportunities for Games Workshop and 4Imprint Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Games and 4Imprint is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and 4Imprint Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Imprint Group 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 4Imprint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Imprint Group Plc has no effect on the direction of Games Workshop i.e., Games Workshop and 4Imprint Group go up and down completely randomly.
Pair Corralation between Games Workshop and 4Imprint Group
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.98 times more return on investment than 4Imprint Group. However, Games Workshop Group is 1.02 times less risky than 4Imprint Group. It trades about 0.14 of its potential returns per unit of risk. 4Imprint Group Plc is currently generating about -0.05 per unit of risk. If you would invest 984,065 in Games Workshop Group on September 3, 2024 and sell it today you would earn a total of 437,935 from holding Games Workshop Group or generate 44.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. 4Imprint Group Plc
Performance |
| Timeline |
| Games Workshop Group |
| 4Imprint Group Plc |
Games Workshop and 4Imprint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and 4Imprint Group
The main advantage of trading using opposite Games Workshop and 4Imprint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, 4Imprint Group 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 4Imprint Group will offset losses from the drop in 4Imprint Group's long position.| Games Workshop vs. BW Offshore | Games Workshop vs. Orient Telecoms | Games Workshop vs. Compagnie Plastic Omnium | Games Workshop vs. Cairo Communication SpA |
| 4Imprint Group vs. Games Workshop Group | 4Imprint Group vs. Arcticzymes Technologies ASA | 4Imprint Group vs. Odyssean Investment Trust | 4Imprint Group vs. The Mercantile Investment |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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