Correlation Between Games Workshop and TRIPCOM GROUP

Can any of the company-specific risk be diversified away by investing in both Games Workshop and TRIPCOM GROUP 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 TRIPCOM GROUP 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 TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on Games Workshop and TRIPCOM GROUP 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 TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and TRIPCOM GROUP.

Diversification Opportunities for Games Workshop and TRIPCOM GROUP

-0.8

Correlation Coefficient

Games Workshop  TRIPCOM GROUP

Pay attention - limited upside

The 3 months correlation between Games and TRIPCOM is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL 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 TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of Games Workshop i.e., Games Workshop and TRIPCOM GROUP go up and down completely randomly.

Pair Corralation between Games Workshop and TRIPCOM GROUP

Assuming the 90 days trading horizon Games Workshop is expected to generate 1.96 times less return on investment than TRIPCOM GROUP. But when comparing it to its historical volatility, Games Workshop Group is 1.73 times less risky than TRIPCOM GROUP. It trades about 0.04 of its potential returns per unit of risk. TRIPCOM GROUP DL 00125 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,482  in TRIPCOM GROUP DL 00125 on July 1, 2025 and sell it today you would earn a total of  2,942  from holding TRIPCOM GROUP DL 00125 or generate 84.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Games Workshop Group  vs.  TRIPCOM GROUP DL 00125

Games Workshop Group

Risk-Adjusted Performance

Weakest

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 latest fragile 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.

TRIPCOM GROUP DL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TRIPCOM GROUP DL 00125 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TRIPCOM GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Games Workshop and TRIPCOM GROUP

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

The idea behind Games Workshop Group and TRIPCOM GROUP DL 00125 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.