Correlation Between Games Workshop and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Games Workshop and Kolibri Global 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 Kolibri Global 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 Kolibri Global Energy, you can compare the effects of market volatilities on Games Workshop and Kolibri Global 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 Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Kolibri Global.
Diversification Opportunities for Games Workshop and Kolibri Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Games and Kolibri is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy 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 Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Games Workshop i.e., Games Workshop and Kolibri Global go up and down completely randomly.
Pair Corralation between Games Workshop and Kolibri Global
Assuming the 90 days horizon Games Workshop Group is expected to generate 1.06 times more return on investment than Kolibri Global. However, Games Workshop is 1.06 times more volatile than Kolibri Global Energy. It trades about 0.05 of its potential returns per unit of risk. Kolibri Global Energy is currently generating about 0.03 per unit of risk. If you would invest 11,305 in Games Workshop Group on October 25, 2024 and sell it today you would earn a total of 6,420 from holding Games Workshop Group or generate 56.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.54% |
| Values | Daily Returns |
Games Workshop Group vs. Kolibri Global Energy
Performance |
| Timeline |
| Games Workshop Group |
| Kolibri Global Energy |
Games Workshop and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and Kolibri Global
The main advantage of trading using opposite Games Workshop and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Games Workshop vs. OneSpaWorld Holdings | Games Workshop vs. Johnson Outdoors | Games Workshop vs. Escalade Incorporated | Games Workshop vs. JAKKS Pacific |
| Kolibri Global vs. WPP PLC ADR | Kolibri Global vs. Global E Online | Kolibri Global vs. National CineMedia | Kolibri Global vs. Entravision Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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