Correlation Between Carson Cumberbatch and Amaya Leisure
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By analyzing existing cross correlation between Carson Cumberbatch PLC and Amaya Leisure PLC, you can compare the effects of market volatilities on Carson Cumberbatch and Amaya Leisure 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 Carson Cumberbatch with a short position of Amaya Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and Amaya Leisure.
Diversification Opportunities for Carson Cumberbatch and Amaya Leisure
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carson and Amaya is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch PLC and Amaya Leisure PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaya Leisure PLC and Carson Cumberbatch 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 Carson Cumberbatch PLC are associated (or correlated) with Amaya Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaya Leisure PLC has no effect on the direction of Carson Cumberbatch i.e., Carson Cumberbatch and Amaya Leisure go up and down completely randomly.
Pair Corralation between Carson Cumberbatch and Amaya Leisure
Assuming the 90 days trading horizon Carson Cumberbatch is expected to generate 2.92 times less return on investment than Amaya Leisure. But when comparing it to its historical volatility, Carson Cumberbatch PLC is 2.06 times less risky than Amaya Leisure. It trades about 0.38 of its potential returns per unit of risk. Amaya Leisure PLC is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 2,190 in Amaya Leisure PLC on September 5, 2024 and sell it today you would earn a total of 1,110 from holding Amaya Leisure PLC or generate 50.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carson Cumberbatch PLC vs. Amaya Leisure PLC
Performance |
| Timeline |
| Carson Cumberbatch PLC |
| Amaya Leisure PLC |
Carson Cumberbatch and Amaya Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carson Cumberbatch and Amaya Leisure
The main advantage of trading using opposite Carson Cumberbatch and Amaya Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch position performs unexpectedly, Amaya Leisure 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 Amaya Leisure will offset losses from the drop in Amaya Leisure's long position.| Carson Cumberbatch vs. SERENDIB HOTELS PLC | Carson Cumberbatch vs. Commercial Credit and | Carson Cumberbatch vs. Eden Hotel Lanka | Carson Cumberbatch vs. Tangerine Beach Hotels |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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