Correlation Between Games Workshop and NB Private
Can any of the company-specific risk be diversified away by investing in both Games Workshop and NB Private 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 NB Private 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 NB Private Equity, you can compare the effects of market volatilities on Games Workshop and NB Private 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 NB Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and NB Private.
Diversification Opportunities for Games Workshop and NB Private
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and NBPE is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and NB Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NB Private Equity 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 NB Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NB Private Equity has no effect on the direction of Games Workshop i.e., Games Workshop and NB Private go up and down completely randomly.
Pair Corralation between Games Workshop and NB Private
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 2.28 times more return on investment than NB Private. However, Games Workshop is 2.28 times more volatile than NB Private Equity. It trades about 0.23 of its potential returns per unit of risk. NB Private Equity is currently generating about -0.02 per unit of risk. If you would invest 1,047,533 in Games Workshop Group on August 26, 2024 and sell it today you would earn a total of 325,467 from holding Games Workshop Group or generate 31.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Games Workshop Group vs. NB Private Equity
Performance |
| Timeline |
| Games Workshop Group |
| NB Private Equity |
Games Workshop and NB Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and NB Private
The main advantage of trading using opposite Games Workshop and NB Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, NB Private 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 NB Private will offset losses from the drop in NB Private's long position.| Games Workshop vs. St Galler Kantonalbank | Games Workshop vs. Auto Trader Group | Games Workshop vs. Melia Hotels | Games Workshop vs. Discover Financial Services |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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