Correlation Between Games Workshop and ALBIS LEASING

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

Diversification Opportunities for Games Workshop and ALBIS LEASING

0.36

Correlation Coefficient

Games Workshop  ALBIS LEASING

Weak diversification

The 3 months correlation between Games and ALBIS is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Games Workshop i.e., Games Workshop and ALBIS LEASING go up and down completely randomly.

Pair Corralation between Games Workshop and ALBIS LEASING

Assuming the 90 days trading horizon Games Workshop Group is expected to under-perform the ALBIS LEASING. In addition to that, Games Workshop is 1.57 times more volatile than ALBIS LEASING AG. It trades about -0.12 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.19 per unit of volatility. If you would invest  267.00  in ALBIS LEASING AG on April 8, 2025 and sell it today you would earn a total of  9.00  from holding ALBIS LEASING AG or generate 3.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Games Workshop Group  vs.  ALBIS LEASING AG

Games Workshop Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Games Workshop unveiled solid returns over the last few months and may actually be approaching a breakup point.

ALBIS LEASING AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, ALBIS LEASING 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 Games Workshop and ALBIS LEASING

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

The idea behind Games Workshop Group and ALBIS LEASING AG 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..