Correlation Between Workspace Group and Games Workshop

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Workspace Group 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 Workspace Group and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workspace Group PLC and Games Workshop Group, you can compare the effects of market volatilities on Workspace Group 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 Workspace Group with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workspace Group and Games Workshop.

Diversification Opportunities for Workspace Group and Games Workshop

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Workspace and Games is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Workspace Group PLC 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 Workspace Group 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 Workspace Group PLC 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 Workspace Group i.e., Workspace Group and Games Workshop go up and down completely randomly.

Pair Corralation between Workspace Group and Games Workshop

Assuming the 90 days trading horizon Workspace Group is expected to generate 2.33 times less return on investment than Games Workshop. In addition to that, Workspace Group is 1.01 times more volatile than Games Workshop Group. It trades about 0.02 of its total potential returns per unit of risk. Games Workshop Group is currently generating about 0.06 per unit of volatility. If you would invest  839,013  in Games Workshop Group on September 29, 2024 and sell it today you would earn a total of  477,987  from holding Games Workshop Group or generate 56.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Workspace Group PLC  vs.  Games Workshop Group

 Performance 
       Timeline  
Workspace Group PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Workspace Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Games Workshop Group 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
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.

Workspace Group and Games Workshop Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Workspace Group and Games Workshop

The main advantage of trading using opposite Workspace Group and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workspace Group 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 Workspace Group PLC 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.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Equity Valuation
Check real value of public entities based on technical and fundamental data
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA