Correlation Between Keck Seng and Red Lion
Can any of the company-specific risk be diversified away by investing in both Keck Seng and Red Lion at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Keck Seng and Red Lion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keck Seng Investments and Red Lion Hotels, you can compare the effects of market volatilities on Keck Seng and Red Lion 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 Keck Seng with a short position of Red Lion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Red Lion.
Diversification Opportunities for Keck Seng and Red Lion
Pay attention - limited upside
The 3 months correlation between Keck and Red is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and Red Lion Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Lion Hotels and Keck Seng 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 Keck Seng Investments are associated (or correlated) with Red Lion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Lion Hotels has no effect on the direction of Keck Seng i.e., Keck Seng and Red Lion go up and down completely randomly.
Pair Corralation between Keck Seng and Red Lion
If you would invest 25.00 in Keck Seng Investments on January 19, 2024 and sell it today you would earn a total of 6.00 from holding Keck Seng Investments or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Keck Seng Investments vs. Red Lion Hotels
Performance |
| Timeline |
| Keck Seng Investments |
| Red Lion Hotels |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Keck Seng and Red Lion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and Red Lion
The main advantage of trading using opposite Keck Seng and Red Lion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Red Lion 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 Red Lion will offset losses from the drop in Red Lion's long position.| Keck Seng vs. Marriott International | Keck Seng vs. Hilton Worldwide Holdings | Keck Seng vs. InterContinental Hotels Group | Keck Seng vs. Accor SA |
| Red Lion vs. SWK Holdings Corp | Red Lion vs. Saratoga Investment Corp | Red Lion vs. Getty Realty | Red Lion vs. Arhaus Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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