Correlation Between Games Workshop and Adstar

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

Diversification Opportunities for Games Workshop and Adstar

0.0

Correlation Coefficient

Games Workshop  Adstar

Pay attention - limited upside

The 3 months correlation between Games and Adstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and Adstar Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adstar Inc 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 Adstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adstar Inc has no effect on the direction of Games Workshop i.e., Games Workshop and Adstar go up and down completely randomly.

Pair Corralation between Games Workshop and Adstar

If you would invest  10,578  in Games Workshop Group on October 9, 2024 and sell it today you would earn a total of  6,222  from holding Games Workshop Group or generate 58.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	31.93%
Values	Daily Returns

Games Workshop Group  vs.  Adstar Inc

Games Workshop Group

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal forward-looking signals, Games Workshop reported solid returns over the last few months and may actually be approaching a breakup point.

Adstar Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Games Workshop and Adstar

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

The idea behind Games Workshop Group and Adstar Inc 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.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.