Correlation Between Jacquet Metal and Games Workshop

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

Diversification Opportunities for Jacquet Metal and Games Workshop

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Jacquet and Games is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service 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 Jacquet Metal 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 Jacquet Metal Service 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 Jacquet Metal i.e., Jacquet Metal and Games Workshop go up and down completely randomly.

Pair Corralation between Jacquet Metal and Games Workshop

Assuming the 90 days trading horizon Jacquet Metal is expected to generate 2.09 times less return on investment than Games Workshop. But when comparing it to its historical volatility, Jacquet Metal Service is 1.59 times less risky than Games Workshop. It trades about 0.12 of its potential returns per unit of risk. Games Workshop Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,069,378  in Games Workshop Group on September 19, 2024 and sell it today you would earn a total of  285,622  from holding Games Workshop Group or generate 26.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Jacquet Metal Service  vs.  Games Workshop Group

 Performance 
       Timeline  
Jacquet Metal Service 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Games Workshop Group 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Games Workshop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Jacquet Metal and Games Workshop Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jacquet Metal and Games Workshop

The main advantage of trading using opposite Jacquet Metal and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal 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 Jacquet Metal Service 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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