Correlation Between Amaya Leisure and SEYLAN BANK
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By analyzing existing cross correlation between Amaya Leisure PLC and SEYLAN BANK PLC, you can compare the effects of market volatilities on Amaya Leisure and SEYLAN BANK 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 SEYLAN BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaya Leisure and SEYLAN BANK.
Diversification Opportunities for Amaya Leisure and SEYLAN BANK
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amaya and SEYLAN is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amaya Leisure PLC and SEYLAN BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEYLAN BANK 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 SEYLAN BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEYLAN BANK PLC has no effect on the direction of Amaya Leisure i.e., Amaya Leisure and SEYLAN BANK go up and down completely randomly.
Pair Corralation between Amaya Leisure and SEYLAN BANK
Assuming the 90 days trading horizon Amaya Leisure is expected to generate 2.12 times less return on investment than SEYLAN BANK. But when comparing it to its historical volatility, Amaya Leisure PLC is 1.07 times less risky than SEYLAN BANK. It trades about 0.05 of its potential returns per unit of risk. SEYLAN BANK PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,940 in SEYLAN BANK PLC on September 19, 2024 and sell it today you would earn a total of 2,890 from holding SEYLAN BANK PLC or generate 148.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Amaya Leisure PLC vs. SEYLAN BANK PLC
Performance |
| Timeline |
| Amaya Leisure PLC |
| SEYLAN BANK PLC |
Amaya Leisure and SEYLAN BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amaya Leisure and SEYLAN BANK
The main advantage of trading using opposite Amaya Leisure and SEYLAN BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaya Leisure position performs unexpectedly, SEYLAN BANK 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 SEYLAN BANK will offset losses from the drop in SEYLAN BANK'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 |
| SEYLAN BANK vs. Hatton National Bank | SEYLAN BANK vs. Convenience Foods PLC | SEYLAN BANK vs. Amaya Leisure PLC | SEYLAN BANK vs. HATTON NATIONAL BANK |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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