Correlation Between Games Workshop and Supermarket Income
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Supermarket Income 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 Supermarket Income 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 Supermarket Income REIT, you can compare the effects of market volatilities on Games Workshop and Supermarket Income 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 Supermarket Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Supermarket Income.
Diversification Opportunities for Games Workshop and Supermarket Income
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Games and Supermarket is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Supermarket Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermarket Income REIT 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 Supermarket Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermarket Income REIT has no effect on the direction of Games Workshop i.e., Games Workshop and Supermarket Income go up and down completely randomly.
Pair Corralation between Games Workshop and Supermarket Income
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 1.23 times more return on investment than Supermarket Income. However, Games Workshop is 1.23 times more volatile than Supermarket Income REIT. It trades about 0.07 of its potential returns per unit of risk. Supermarket Income REIT is currently generating about 0.0 per unit of risk. If you would invest 912,370 in Games Workshop Group on September 2, 2024 and sell it today you would earn a total of 500,630 from holding Games Workshop Group or generate 54.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. Supermarket Income REIT
Performance |
| Timeline |
| Games Workshop Group |
| Supermarket Income REIT |
Games Workshop and Supermarket Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Supermarket Income
The main advantage of trading using opposite Games Workshop and Supermarket Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Supermarket Income 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 Supermarket Income will offset losses from the drop in Supermarket Income's long position.| Games Workshop vs. Uniper SE | Games Workshop vs. Mulberry Group PLC | Games Workshop vs. London Security Plc | Games Workshop vs. Triad Group PLC |
| Supermarket Income vs. Derwent London PLC | Supermarket Income vs. Workspace Group PLC | Supermarket Income vs. Diversified Energy | Supermarket Income vs. Thyssenkrupp AG ON |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |