Correlation Between Games Workshop and Almacenes Xito
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Almacenes Xito 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 Almacenes Xito 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 Almacenes xito SA, you can compare the effects of market volatilities on Games Workshop and Almacenes Xito 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 Almacenes Xito. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Almacenes Xito.
Diversification Opportunities for Games Workshop and Almacenes Xito
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Games and Almacenes is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Almacenes xito SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almacenes xito SA 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 Almacenes Xito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almacenes xito SA has no effect on the direction of Games Workshop i.e., Games Workshop and Almacenes Xito go up and down completely randomly.
Pair Corralation between Games Workshop and Almacenes Xito
Assuming the 90 days horizon Games Workshop Group is expected to generate 2.25 times more return on investment than Almacenes Xito. However, Games Workshop is 2.25 times more volatile than Almacenes xito SA. It trades about 0.15 of its potential returns per unit of risk. Almacenes xito SA is currently generating about -0.12 per unit of risk. If you would invest 16,800 in Games Workshop Group on November 3, 2024 and sell it today you would earn a total of 1,800 from holding Games Workshop Group or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Games Workshop Group vs. Almacenes xito SA
Performance |
| Timeline |
| Games Workshop Group |
| Almacenes xito SA |
Games Workshop and Almacenes Xito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Almacenes Xito
The main advantage of trading using opposite Games Workshop and Almacenes Xito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Almacenes Xito 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 Almacenes Xito will offset losses from the drop in Almacenes Xito's long position.| Games Workshop vs. OneSpaWorld Holdings | Games Workshop vs. Johnson Outdoors | Games Workshop vs. Escalade Incorporated | Games Workshop vs. JAKKS Pacific |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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