Correlation Between Games Workshop and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both Games Workshop and ArcelorMittal 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 ArcelorMittal 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 ArcelorMittal SA, you can compare the effects of market volatilities on Games Workshop and ArcelorMittal 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 ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and ArcelorMittal.
Diversification Opportunities for Games Workshop and ArcelorMittal
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Games and ArcelorMittal is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group and ArcelorMittal SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA has no effect on the direction of Games Workshop i.e., Games Workshop and ArcelorMittal go up and down completely randomly.
Pair Corralation between Games Workshop and ArcelorMittal
Assuming the 90 days horizon Games Workshop is expected to generate 1.06 times less return on investment than ArcelorMittal. In addition to that, Games Workshop is 1.14 times more volatile than ArcelorMittal SA. It trades about 0.14 of its total potential returns per unit of risk. ArcelorMittal SA is currently generating about 0.17 per unit of volatility. If you would invest 3,405 in ArcelorMittal SA on September 10, 2025 and sell it today you would earn a total of 931.00 from holding ArcelorMittal SA or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Games Workshop Group vs. ArcelorMittal SA
Performance |
| Timeline |
| Games Workshop Group |
| ArcelorMittal SA |
Games Workshop and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Games Workshop and ArcelorMittal
The main advantage of trading using opposite Games Workshop and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| Games Workshop vs. Kingfisher PLC ADR | Games Workshop vs. Barratt Developments plc | Games Workshop vs. Kingfisher plc | Games Workshop vs. Thule Group AB |
| ArcelorMittal vs. Vallourec SA | ArcelorMittal vs. Nippon Steel | ArcelorMittal vs. Sika AG ADR | ArcelorMittal vs. Sika AG |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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