Correlation Between Games Workshop and 14040HCY9

Can any of the company-specific risk be diversified away by investing in both Games Workshop and 14040HCY9 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 14040HCY9 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 COF 5817 01 FEB 34, you can compare the effects of market volatilities on Games Workshop and 14040HCY9 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 14040HCY9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and 14040HCY9.

Diversification Opportunities for Games Workshop and 14040HCY9

-0.01

Correlation Coefficient

Games Workshop  14040HCY9

Good diversification

The 3 months correlation between Games and 14040HCY9 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and COF 5817 01 FEB 34 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COF 5817 01 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 14040HCY9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COF 5817 01 has no effect on the direction of Games Workshop i.e., Games Workshop and 14040HCY9 go up and down completely randomly.

Pair Corralation between Games Workshop and 14040HCY9

Assuming the 90 days horizon Games Workshop Group is expected to generate 1.81 times more return on investment than 14040HCY9. However, Games Workshop is 1.81 times more volatile than COF 5817 01 FEB 34. It trades about 0.13 of its potential returns per unit of risk. COF 5817 01 FEB 34 is currently generating about -0.12 per unit of risk. If you would invest  16,800  in Games Workshop Group on December 25, 2024 and sell it today you would earn a total of  2,978  from holding Games Workshop Group or generate 17.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.52%
Values	Daily Returns

Games Workshop Group  vs.  COF 5817 01 FEB 34

Games Workshop Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 10 (%) 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.

COF 5817 01

Risk-Adjusted Performance

Very Weak

Over the last 90 days COF 5817 01 FEB 34 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for COF 5817 01 FEB 34 investors.

Pair Trading with Games Workshop and 14040HCY9

The main advantage of trading using opposite Games Workshop and 14040HCY9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, 14040HCY9 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 14040HCY9 will offset losses from the drop in 14040HCY9's long position.

The idea behind Games Workshop Group and COF 5817 01 FEB 34 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.