Correlation Between Games Workshop and Tetragon Financial
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Tetragon Financial 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 Tetragon Financial 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 Tetragon Financial Group, you can compare the effects of market volatilities on Games Workshop and Tetragon Financial 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 Tetragon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Tetragon Financial.
Diversification Opportunities for Games Workshop and Tetragon Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Games and Tetragon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Tetragon Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tetragon Financial 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 Tetragon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tetragon Financial has no effect on the direction of Games Workshop i.e., Games Workshop and Tetragon Financial go up and down completely randomly.
Pair Corralation between Games Workshop and Tetragon Financial
Assuming the 90 days trading horizon Games Workshop Group is expected to under-perform the Tetragon Financial. In addition to that, Games Workshop is 2.25 times more volatile than Tetragon Financial Group. It trades about -0.25 of its total potential returns per unit of risk. Tetragon Financial Group is currently generating about 0.07 per unit of volatility. If you would invest 1,420 in Tetragon Financial Group on October 10, 2024 and sell it today you would earn a total of 10.00 from holding Tetragon Financial Group or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. Tetragon Financial Group
Performance |
| Timeline |
| Games Workshop Group |
| Tetragon Financial |
Games Workshop and Tetragon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Tetragon Financial
The main advantage of trading using opposite Games Workshop and Tetragon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Tetragon Financial 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 Tetragon Financial will offset losses from the drop in Tetragon Financial's long position.| Games Workshop vs. STMicroelectronics NV | Games Workshop vs. Playtech Plc | Games Workshop vs. JD Sports Fashion | Games Workshop vs. Automatic Data Processing |
| Tetragon Financial vs. AMG Advanced Metallurgical | Tetragon Financial vs. Gaztransport et Technigaz | Tetragon Financial vs. Capital Drilling | Tetragon Financial vs. Sovereign Metals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |