Correlation Between Hilton Worldwide and Keck Seng
Can any of the company-specific risk be diversified away by investing in both Hilton Worldwide and Keck Seng 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 Hilton Worldwide and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Worldwide Holdings and Keck Seng Investments, you can compare the effects of market volatilities on Hilton Worldwide and Keck Seng 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 Hilton Worldwide with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Worldwide and Keck Seng.
Diversification Opportunities for Hilton Worldwide and Keck Seng
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hilton and Keck is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Worldwide Holdings and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments and Hilton Worldwide 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 Hilton Worldwide Holdings are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of Hilton Worldwide i.e., Hilton Worldwide and Keck Seng go up and down completely randomly.
Pair Corralation between Hilton Worldwide and Keck Seng
Assuming the 90 days trading horizon Hilton Worldwide is expected to generate 2.1 times less return on investment than Keck Seng. But when comparing it to its historical volatility, Hilton Worldwide Holdings is 4.17 times less risky than Keck Seng. It trades about 0.11 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Keck Seng Investments on October 30, 2024 and sell it today you would earn a total of 12.00 from holding Keck Seng Investments or generate 85.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Worldwide Holdings vs. Keck Seng Investments
Performance |
| Timeline |
| Hilton Worldwide Holdings |
| Keck Seng Investments |
Hilton Worldwide and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Worldwide and Keck Seng
The main advantage of trading using opposite Hilton Worldwide and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Worldwide position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| Hilton Worldwide vs. Cleanaway Waste Management | Hilton Worldwide vs. ALERION CLEANPOWER | Hilton Worldwide vs. CVW CLEANTECH INC | Hilton Worldwide vs. Carnegie Clean Energy |
| Keck Seng vs. DETALION GAMES SA | Keck Seng vs. TEN SQUARE GAMES | Keck Seng vs. Media and Games | Keck Seng vs. American Public Education |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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