Correlation Between Amaya Leisure and Central Industries
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By analyzing existing cross correlation between Amaya Leisure PLC and Central Industries PLC, you can compare the effects of market volatilities on Amaya Leisure and Central Industries 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 Central Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaya Leisure and Central Industries.
Diversification Opportunities for Amaya Leisure and Central Industries
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amaya and Central is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amaya Leisure PLC and Central Industries PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Industries 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 Central Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Industries PLC has no effect on the direction of Amaya Leisure i.e., Amaya Leisure and Central Industries go up and down completely randomly.
Pair Corralation between Amaya Leisure and Central Industries
Assuming the 90 days trading horizon Amaya Leisure PLC is expected to generate 1.74 times more return on investment than Central Industries. However, Amaya Leisure is 1.74 times more volatile than Central Industries PLC. It trades about 0.4 of its potential returns per unit of risk. Central Industries PLC is currently generating about 0.22 per unit of risk. If you would invest 2,410 in Amaya Leisure PLC on September 14, 2024 and sell it today you would earn a total of 760.00 from holding Amaya Leisure PLC or generate 31.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amaya Leisure PLC vs. Central Industries PLC
Performance |
| Timeline |
| Amaya Leisure PLC |
| Central Industries PLC |
Amaya Leisure and Central Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amaya Leisure and Central Industries
The main advantage of trading using opposite Amaya Leisure and Central Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaya Leisure position performs unexpectedly, Central Industries 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 Central Industries will offset losses from the drop in Central Industries' long position.| Amaya Leisure vs. Jat Holdings PLC | Amaya Leisure vs. Lanka Credit and | Amaya Leisure vs. VIDULLANKA PLC | Amaya Leisure vs. Carson Cumberbatch PLC |
| Central Industries vs. Pegasus Hotels of | Central Industries vs. Sigiriya Village Hotels | Central Industries vs. Lighthouse Hotel PLC | Central Industries vs. BROWNS INVESTMENTS PLC |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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