Correlation Between Games Workshop and Impax Asset
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Impax Asset 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 Impax Asset 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 Impax Asset Management, you can compare the effects of market volatilities on Games Workshop and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Impax Asset.
Diversification Opportunities for Games Workshop and Impax Asset
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and Impax is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Games Workshop i.e., Games Workshop and Impax Asset go up and down completely randomly.
Pair Corralation between Games Workshop and Impax Asset
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.74 times more return on investment than Impax Asset. However, Games Workshop Group is 1.34 times less risky than Impax Asset. It trades about 0.09 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.06 per unit of risk. If you would invest 948,498 in Games Workshop Group on August 25, 2024 and sell it today you would earn a total of 424,502 from holding Games Workshop Group or generate 44.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. Impax Asset Management
Performance |
| Timeline |
| Games Workshop Group |
| Impax Asset Management |
Games Workshop and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Impax Asset
The main advantage of trading using opposite Games Workshop and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| Games Workshop vs. SupplyMe Capital PLC | Games Workshop vs. FuelCell Energy | Games Workshop vs. Grand Vision Media | Games Workshop vs. DG Innovate PLC |
| Impax Asset vs. International Biotechnology Trust | Impax Asset vs. Raytheon Technologies Corp | Impax Asset vs. Playtech Plc | Impax Asset vs. Uber Technologies |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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