Correlation Between NORWEGIAN AIR and Games Workshop

Can any of the company-specific risk be diversified away by investing in both NORWEGIAN AIR 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 NORWEGIAN AIR and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NORWEGIAN AIR SHUT and Games Workshop Group, you can compare the effects of market volatilities on NORWEGIAN AIR 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 NORWEGIAN AIR with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORWEGIAN AIR and Games Workshop.

Diversification Opportunities for NORWEGIAN AIR and Games Workshop

0.0

Correlation Coefficient

NORWEGIAN AIR  Games Workshop

Pay attention - limited upside

The 3 months correlation between NORWEGIAN and Games is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NORWEGIAN AIR SHUT 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 NORWEGIAN AIR 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 NORWEGIAN AIR SHUT 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 NORWEGIAN AIR i.e., NORWEGIAN AIR and Games Workshop go up and down completely randomly.

Pair Corralation between NORWEGIAN AIR and Games Workshop

If you would invest  0.00  in Games Workshop Group on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Games Workshop Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.88%
Values	Daily Returns

NORWEGIAN AIR SHUT  vs.  Games Workshop Group

NORWEGIAN AIR SHUT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NORWEGIAN AIR SHUT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Games Workshop Group

Risk-Adjusted Performance

0 of 100

OK

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with NORWEGIAN AIR and Games Workshop

The main advantage of trading using opposite NORWEGIAN AIR and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORWEGIAN AIR 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.

The idea behind NORWEGIAN AIR SHUT and Games Workshop Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.