Correlation Between Synthomer Plc and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Synthomer Plc and Games Workshop 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 Synthomer Plc and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synthomer plc and Games Workshop Group, you can compare the effects of market volatilities on Synthomer Plc and Games Workshop 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 Synthomer Plc with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synthomer Plc and Games Workshop.
Diversification Opportunities for Synthomer Plc and Games Workshop
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Synthomer and Games is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Synthomer plc and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group and Synthomer Plc 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 Synthomer plc are associated (or correlated) with Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of Synthomer Plc i.e., Synthomer Plc and Games Workshop go up and down completely randomly.
Pair Corralation between Synthomer Plc and Games Workshop
Assuming the 90 days trading horizon Synthomer plc is expected to under-perform the Games Workshop. But the stock apears to be less risky and, when comparing its historical volatility, Synthomer plc is 1.34 times less risky than Games Workshop. The stock trades about -0.1 of its potential returns per unit of risk. The Games Workshop Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,204,000 in Games Workshop Group on September 12, 2024 and sell it today you would earn a total of 186,000 from holding Games Workshop Group or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synthomer plc vs. Games Workshop Group
Performance |
| Timeline |
| Synthomer plc |
| Games Workshop Group |
Synthomer Plc and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synthomer Plc and Games Workshop
The main advantage of trading using opposite Synthomer Plc and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synthomer Plc position performs unexpectedly, Games Workshop 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 Games Workshop will offset losses from the drop in Games Workshop's long position.| Synthomer Plc vs. Givaudan SA | Synthomer Plc vs. Antofagasta PLC | Synthomer Plc vs. Ferrexpo PLC | Synthomer Plc vs. Atalaya Mining |
| Games Workshop vs. X FAB Silicon Foundries | Games Workshop vs. Cairn Homes PLC | Games Workshop vs. Synthomer plc | Games Workshop vs. Beazer Homes USA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stocks Directory Find actively traded stocks across global markets |