Correlation Between Games Workshop and TSOGO SUN

Can any of the company-specific risk be diversified away by investing in both Games Workshop and TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN GAMING, you can compare the effects of market volatilities on Games Workshop and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and TSOGO SUN.

Diversification Opportunities for Games Workshop and TSOGO SUN

-0.2

Correlation Coefficient

Games Workshop  TSOGO SUN

Good diversification

The 3 months correlation between Games and TSOGO is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of Games Workshop i.e., Games Workshop and TSOGO SUN go up and down completely randomly.

Pair Corralation between Games Workshop and TSOGO SUN

Assuming the 90 days trading horizon Games Workshop is expected to generate 83.31 times less return on investment than TSOGO SUN. But when comparing it to its historical volatility, Games Workshop Group is 9.38 times less risky than TSOGO SUN. It trades about 0.01 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  25.00  in TSOGO SUN GAMING on December 1, 2024 and sell it today you would earn a total of  20.00  from holding TSOGO SUN GAMING or generate 80.0% 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.  TSOGO SUN GAMING

Games Workshop Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Games Workshop Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Games Workshop is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

TSOGO SUN GAMING

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TSOGO SUN GAMING are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TSOGO SUN reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Games Workshop and TSOGO SUN

The main advantage of trading using opposite Games Workshop and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.

The idea behind Games Workshop Group and TSOGO SUN GAMING pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.