Correlation Between Games Workshop and Helical Bar
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Helical Bar 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 Helical Bar 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 Helical Bar Plc, you can compare the effects of market volatilities on Games Workshop and Helical Bar 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 Helical Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Helical Bar.
Diversification Opportunities for Games Workshop and Helical Bar
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and Helical is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Helical Bar Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helical Bar 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 Helical Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helical Bar Plc has no effect on the direction of Games Workshop i.e., Games Workshop and Helical Bar go up and down completely randomly.
Pair Corralation between Games Workshop and Helical Bar
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.15 times more return on investment than Helical Bar. However, Games Workshop is 1.15 times more volatile than Helical Bar Plc. It trades about 0.28 of its potential returns per unit of risk. Helical Bar Plc is currently generating about 0.07 per unit of risk. If you would invest 1,308,632 in Games Workshop Group on November 2, 2024 and sell it today you would earn a total of 153,368 from holding Games Workshop Group or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. Helical Bar Plc
Performance |
| Timeline |
| Games Workshop Group |
| Helical Bar Plc |
Games Workshop and Helical Bar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Helical Bar
The main advantage of trading using opposite Games Workshop and Helical Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Helical Bar 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 Helical Bar will offset losses from the drop in Helical Bar's long position.| Games Workshop vs. Liontrust Asset Management | Games Workshop vs. Capital Metals PLC | Games Workshop vs. Science in Sport | Games Workshop vs. Wheaton Precious Metals |
| Helical Bar vs. Derwent London PLC | Helical Bar vs. Hammerson PLC | Helical Bar vs. Supermarket Income REIT | Helical Bar vs. Monks Investment Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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