Correlation Between Amaya Leisure and Hatton National
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By analyzing existing cross correlation between Amaya Leisure PLC and Hatton National Bank, you can compare the effects of market volatilities on Amaya Leisure and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaya Leisure and Hatton National.
Diversification Opportunities for Amaya Leisure and Hatton National
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amaya and Hatton is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amaya Leisure PLC and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National Bank 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Amaya Leisure i.e., Amaya Leisure and Hatton National go up and down completely randomly.
Pair Corralation between Amaya Leisure and Hatton National
Assuming the 90 days trading horizon Amaya Leisure PLC is expected to generate 1.77 times more return on investment than Hatton National. However, Amaya Leisure is 1.77 times more volatile than Hatton National Bank. It trades about 0.3 of its potential returns per unit of risk. Hatton National Bank is currently generating about 0.41 per unit of risk. If you would invest 1,880 in Amaya Leisure PLC on September 15, 2024 and sell it today you would earn a total of 1,320 from holding Amaya Leisure PLC or generate 70.21% 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. Hatton National Bank
Performance |
Timeline |
Amaya Leisure PLC |
Hatton National Bank |
Amaya Leisure and Hatton National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amaya Leisure and Hatton National
The main advantage of trading using opposite Amaya Leisure and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaya Leisure position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National'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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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