Correlation Between Central Industries and Amaya Leisure
Specify exactly 2 symbols:
By analyzing existing cross correlation between Central Industries PLC and Amaya Leisure PLC, you can compare the effects of market volatilities on Central Industries 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 Central Industries with a short position of Amaya Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Industries and Amaya Leisure.
Diversification Opportunities for Central Industries and Amaya Leisure
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Central and Amaya is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Central Industries 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 Central Industries 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 Central Industries 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 Central Industries i.e., Central Industries and Amaya Leisure go up and down completely randomly.
Pair Corralation between Central Industries and Amaya Leisure
Assuming the 90 days trading horizon Central Industries is expected to generate 1.06 times less return on investment than Amaya Leisure. But when comparing it to its historical volatility, Central Industries PLC is 1.24 times less risky than Amaya Leisure. It trades about 0.25 of its potential returns per unit of risk. Amaya Leisure PLC is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,830 in Amaya Leisure PLC on November 2, 2024 and sell it today you would earn a total of 1,470 from holding Amaya Leisure PLC or generate 80.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Industries PLC vs. Amaya Leisure PLC
Performance |
| Timeline |
| Central Industries PLC |
| Amaya Leisure PLC |
Central Industries and Amaya Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Industries and Amaya Leisure
The main advantage of trading using opposite Central Industries and Amaya Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Industries 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.| Central Industries vs. Ceylinco Insurance PLC | Central Industries vs. Renuka Agri Foods | Central Industries vs. Colombo Investment Trust | Central Industries vs. Union Chemicals Lanka |
| Amaya Leisure vs. HNB Finance | Amaya Leisure vs. Prime Lands Residencies | Amaya Leisure vs. Jat Holdings PLC | Amaya Leisure vs. E M L |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |