Correlation Between Games Workshop and Orient Telecoms
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Orient Telecoms 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 Orient Telecoms 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 Orient Telecoms, you can compare the effects of market volatilities on Games Workshop and Orient Telecoms 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 Orient Telecoms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Orient Telecoms.
Diversification Opportunities for Games Workshop and Orient Telecoms
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Games and Orient is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Orient Telecoms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Telecoms 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 Orient Telecoms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Telecoms has no effect on the direction of Games Workshop i.e., Games Workshop and Orient Telecoms go up and down completely randomly.
Pair Corralation between Games Workshop and Orient Telecoms
If you would invest 1,204,000 in Games Workshop Group on September 12, 2024 and sell it today you would earn a total of 186,000 from holding Games Workshop Group or generate 15.45% 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. Orient Telecoms
Performance |
| Timeline |
| Games Workshop Group |
| Orient Telecoms |
Games Workshop and Orient Telecoms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Orient Telecoms
The main advantage of trading using opposite Games Workshop and Orient Telecoms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Orient Telecoms 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 Orient Telecoms will offset losses from the drop in Orient Telecoms' long position.| Games Workshop vs. X FAB Silicon Foundries | Games Workshop vs. Cairn Homes PLC | Games Workshop vs. Synthomer plc | Games Workshop vs. Beazer Homes USA |
| Orient Telecoms vs. Catalyst Media Group | Orient Telecoms vs. CATLIN GROUP | Orient Telecoms vs. Tamburi Investment Partners | Orient Telecoms vs. Magnora ASA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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