Correlation Between E M and Amaya Leisure
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By analyzing existing cross correlation between E M L and Amaya Leisure PLC, you can compare the effects of market volatilities on E M 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 E M with a short position of Amaya Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of E M and Amaya Leisure.
Diversification Opportunities for E M and Amaya Leisure
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EMLN0000 and Amaya is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding E M L 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 E M 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 E M L 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 E M i.e., E M and Amaya Leisure go up and down completely randomly.
Pair Corralation between E M and Amaya Leisure
Assuming the 90 days trading horizon E M L is expected to under-perform the Amaya Leisure. But the stock apears to be less risky and, when comparing its historical volatility, E M L is 1.32 times less risky than Amaya Leisure. The stock trades about -0.04 of its potential returns per unit of risk. The Amaya Leisure PLC is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 2,070 in Amaya Leisure PLC on September 2, 2024 and sell it today you would earn a total of 880.00 from holding Amaya Leisure PLC or generate 42.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E M L vs. Amaya Leisure PLC
Performance |
| Timeline |
| E M L |
| Amaya Leisure PLC |
E M and Amaya Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E M and Amaya Leisure
The main advantage of trading using opposite E M and Amaya Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E M 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.| E M vs. Union Chemicals Lanka | E M vs. CEYLINCO INSURANCE PLC | E M vs. HVA Foods PLC | E M vs. Ceylon Hospitals PLC |
| Amaya Leisure vs. Prime Lands Residencies | Amaya Leisure vs. VIDULLANKA PLC | Amaya Leisure vs. EX PACK RUGATED CARTONS |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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