Correlation Between HNB Finance and Amaya Leisure
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By analyzing existing cross correlation between HNB Finance and Amaya Leisure PLC, you can compare the effects of market volatilities on HNB Finance 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 HNB Finance with a short position of Amaya Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and Amaya Leisure.
Diversification Opportunities for HNB Finance and Amaya Leisure
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HNB and Amaya is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance 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 HNB Finance 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 HNB Finance 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 HNB Finance i.e., HNB Finance and Amaya Leisure go up and down completely randomly.
Pair Corralation between HNB Finance and Amaya Leisure
Assuming the 90 days trading horizon HNB Finance is expected to generate 1.56 times less return on investment than Amaya Leisure. In addition to that, HNB Finance is 1.05 times more volatile than Amaya Leisure PLC. It trades about 0.03 of its total potential returns per unit of risk. Amaya Leisure PLC is currently generating about 0.06 per unit of volatility. If you would invest 2,010 in Amaya Leisure PLC on August 31, 2024 and sell it today you would earn a total of 940.00 from holding Amaya Leisure PLC or generate 46.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.43% |
| Values | Daily Returns |
HNB Finance vs. Amaya Leisure PLC
Performance |
| Timeline |
| HNB Finance |
| Amaya Leisure PLC |
HNB Finance and Amaya Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNB Finance and Amaya Leisure
The main advantage of trading using opposite HNB Finance and Amaya Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance 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.| HNB Finance vs. Palm Garden Hotels | HNB Finance vs. Ceylon Tobacco | HNB Finance vs. Singhe Hospitals | HNB Finance vs. Aitken Spence Hotel |
| Amaya Leisure vs. HNB Finance | Amaya Leisure vs. Prime Lands Residencies | Amaya Leisure vs. Jat Holdings PLC | Amaya Leisure vs. E M L |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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