Correlation Between Amaya Leisure and Pan Asia
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By analyzing existing cross correlation between Amaya Leisure PLC and Pan Asia Banking, you can compare the effects of market volatilities on Amaya Leisure and Pan Asia 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 Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaya Leisure and Pan Asia.
Diversification Opportunities for Amaya Leisure and Pan Asia
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amaya and Pan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amaya Leisure PLC and Pan Asia Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Banking 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 Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Banking has no effect on the direction of Amaya Leisure i.e., Amaya Leisure and Pan Asia go up and down completely randomly.
Pair Corralation between Amaya Leisure and Pan Asia
Assuming the 90 days trading horizon Amaya Leisure is expected to generate 2.11 times less return on investment than Pan Asia. In addition to that, Amaya Leisure is 1.09 times more volatile than Pan Asia Banking. It trades about 0.05 of its total potential returns per unit of risk. Pan Asia Banking is currently generating about 0.11 per unit of volatility. If you would invest 940.00 in Pan Asia Banking on September 19, 2024 and sell it today you would earn a total of 2,090 from holding Pan Asia Banking or generate 222.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.95% |
| Values | Daily Returns |
Amaya Leisure PLC vs. Pan Asia Banking
Performance |
| Timeline |
| Amaya Leisure PLC |
| Pan Asia Banking |
Amaya Leisure and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amaya Leisure and Pan Asia
The main advantage of trading using opposite Amaya Leisure and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaya Leisure position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia's long position.| Amaya Leisure vs. Lanka Credit and | Amaya Leisure vs. VIDULLANKA PLC | Amaya Leisure vs. Carson Cumberbatch PLC | Amaya Leisure vs. Peoples Insurance PLC |
| Pan Asia vs. Hotel Sigiriya PLC | Pan Asia vs. Softlogic Life Insurance | Pan Asia vs. John Keells Hotels | Pan Asia vs. SERENDIB HOTELS 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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