Correlation Between Amaya Leisure and Carson Cumberbatch
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By analyzing existing cross correlation between Amaya Leisure PLC and Carson Cumberbatch PLC, you can compare the effects of market volatilities on Amaya Leisure and Carson Cumberbatch 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 Amaya Leisure with a short position of Carson Cumberbatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaya Leisure and Carson Cumberbatch.
Diversification Opportunities for Amaya Leisure and Carson Cumberbatch
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amaya and Carson is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Amaya Leisure PLC and Carson Cumberbatch PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Cumberbatch PLC and Amaya Leisure 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 Amaya Leisure PLC are associated (or correlated) with Carson Cumberbatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Cumberbatch PLC has no effect on the direction of Amaya Leisure i.e., Amaya Leisure and Carson Cumberbatch go up and down completely randomly.
Pair Corralation between Amaya Leisure and Carson Cumberbatch
Assuming the 90 days trading horizon Amaya Leisure PLC is expected to generate 2.09 times more return on investment than Carson Cumberbatch. However, Amaya Leisure is 2.09 times more volatile than Carson Cumberbatch PLC. It trades about 0.56 of its potential returns per unit of risk. Carson Cumberbatch PLC is currently generating about 0.4 per unit of risk. 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 |
Amaya Leisure PLC vs. Carson Cumberbatch PLC
Performance |
| Timeline |
| Amaya Leisure PLC |
| Carson Cumberbatch PLC |
Amaya Leisure and Carson Cumberbatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amaya Leisure and Carson Cumberbatch
The main advantage of trading using opposite Amaya Leisure and Carson Cumberbatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaya Leisure position performs unexpectedly, Carson Cumberbatch 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 Carson Cumberbatch will offset losses from the drop in Carson Cumberbatch's long position.| Amaya Leisure vs. Carson Cumberbatch PLC | Amaya Leisure vs. Nations Trust Bank | Amaya Leisure vs. Distilleries Company of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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