Correlation Between Games Workshop and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Sabre Insurance 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 Sabre Insurance 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 Sabre Insurance Group, you can compare the effects of market volatilities on Games Workshop and Sabre Insurance 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 Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Sabre Insurance.
Diversification Opportunities for Games Workshop and Sabre Insurance
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Games and Sabre is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group 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 Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of Games Workshop i.e., Games Workshop and Sabre Insurance go up and down completely randomly.
Pair Corralation between Games Workshop and Sabre Insurance
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.05 times more return on investment than Sabre Insurance. However, Games Workshop is 1.05 times more volatile than Sabre Insurance Group. It trades about 0.07 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.05 per unit of risk. If you would invest 859,470 in Games Workshop Group on November 4, 2024 and sell it today you would earn a total of 596,530 from holding Games Workshop Group or generate 69.41% 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. Sabre Insurance Group
Performance |
| Timeline |
| Games Workshop Group |
| Sabre Insurance Group |
Games Workshop and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Sabre Insurance
The main advantage of trading using opposite Games Workshop and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Sabre Insurance 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 Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| Games Workshop vs. Spirent Communications plc | Games Workshop vs. Centaur Media | Games Workshop vs. Catalyst Media Group | Games Workshop vs. Ubisoft Entertainment |
| Sabre Insurance vs. Auto Trader Group | Sabre Insurance vs. Axway Software SA | Sabre Insurance vs. Westlake Chemical Corp | Sabre Insurance vs. Alfa Financial Software |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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