Correlation Between Scientific Games and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Scientific Games 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 Scientific Games and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Games Workshop Group, you can compare the effects of market volatilities on Scientific Games 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 Scientific Games with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Games Workshop.
Diversification Opportunities for Scientific Games and Games Workshop
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scientific and Games is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games 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 Scientific Games 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 Scientific Games 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 Scientific Games i.e., Scientific Games and Games Workshop go up and down completely randomly.
Pair Corralation between Scientific Games and Games Workshop
Assuming the 90 days horizon Scientific Games is expected to generate 1.59 times more return on investment than Games Workshop. However, Scientific Games is 1.59 times more volatile than Games Workshop Group. It trades about 0.04 of its potential returns per unit of risk. Games Workshop Group is currently generating about -0.08 per unit of risk. If you would invest 8,400 in Scientific Games on August 24, 2024 and sell it today you would earn a total of 150.00 from holding Scientific Games or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Scientific Games vs. Games Workshop Group
Performance |
| Timeline |
| Scientific Games |
| Games Workshop Group |
Scientific Games and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Games Workshop
The main advantage of trading using opposite Scientific Games and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games 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.| Scientific Games vs. Natural Health Trends | Scientific Games vs. DiamondRock Hospitality | Scientific Games vs. PLAY2CHILL SA ZY | Scientific Games vs. Universal Display |
| Games Workshop vs. NISSAN CHEMICAL IND | Games Workshop vs. LG Display Co | Games Workshop vs. WESTLAKE CHEMICAL | Games Workshop vs. Sanyo Chemical Industries |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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