Correlation Between YOOMA WELLNESS and Games Workshop

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

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

Diversification Opportunities for YOOMA WELLNESS and Games Workshop

0.0

Correlation Coefficient

YOOMA WELLNESS  Games Workshop

Pay attention - limited upside

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

Pair Corralation between YOOMA WELLNESS and Games Workshop

If you would invest  11,989  in Games Workshop Group on September 3, 2024 and sell it today you would earn a total of  4,911  from holding Games Workshop Group or generate 40.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

YOOMA WELLNESS INC  vs.  Games Workshop Group

YOOMA WELLNESS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YOOMA WELLNESS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, YOOMA WELLNESS is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Games Workshop Group

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Games Workshop unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YOOMA WELLNESS and Games Workshop

The main advantage of trading using opposite YOOMA WELLNESS and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YOOMA WELLNESS 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 YOOMA WELLNESS INC 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.