Correlation Between Games Workshop and YouGov Plc
Can any of the company-specific risk be diversified away by investing in both Games Workshop and YouGov Plc 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 YouGov Plc 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 YouGov plc, you can compare the effects of market volatilities on Games Workshop and YouGov Plc 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 YouGov Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and YouGov Plc.
Diversification Opportunities for Games Workshop and YouGov Plc
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and YouGov is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and YouGov plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YouGov plc 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 YouGov Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YouGov plc has no effect on the direction of Games Workshop i.e., Games Workshop and YouGov Plc go up and down completely randomly.
Pair Corralation between Games Workshop and YouGov Plc
Assuming the 90 days trading horizon Games Workshop Group is expected to generate 0.4 times more return on investment than YouGov Plc. However, Games Workshop Group is 2.5 times less risky than YouGov Plc. It trades about 0.14 of its potential returns per unit of risk. YouGov plc is currently generating about -0.07 per unit of risk. If you would invest 993,896 in Games Workshop Group on September 1, 2024 and sell it today you would earn a total of 419,104 from holding Games Workshop Group or generate 42.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. YouGov plc
Performance |
| Timeline |
| Games Workshop Group |
| YouGov plc |
Games Workshop and YouGov Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and YouGov Plc
The main advantage of trading using opposite Games Workshop and YouGov Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, YouGov Plc 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 YouGov Plc will offset losses from the drop in YouGov Plc's long position.| Games Workshop vs. Liberty Media Corp | Games Workshop vs. Live Nation Entertainment | Games Workshop vs. Catena Media PLC | Games Workshop vs. Intermediate Capital Group |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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