Correlation Between Games Workshop and Halyk Bank

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

Diversification Opportunities for Games Workshop and Halyk Bank

0.74

Correlation Coefficient

Games Workshop  Halyk Bank

Poor diversification

The 3 months correlation between Games and Halyk is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank 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 Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Games Workshop i.e., Games Workshop and Halyk Bank go up and down completely randomly.

Pair Corralation between Games Workshop and Halyk Bank

Assuming the 90 days trading horizon Games Workshop is expected to generate 1.79 times less return on investment than Halyk Bank. In addition to that, Games Workshop is 1.32 times more volatile than Halyk Bank of. It trades about 0.06 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.14 per unit of volatility. If you would invest  788.00  in Halyk Bank of on September 29, 2024 and sell it today you would earn a total of  1,162  from holding Halyk Bank of or generate 147.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Games Workshop Group  vs.  Halyk Bank of

Games Workshop Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Games Workshop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Halyk Bank

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Halyk Bank of are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Halyk Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Games Workshop and Halyk Bank

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

The idea behind Games Workshop Group and Halyk Bank of 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.