Correlation Between Four Leaf and Red Rock
Can any of the company-specific risk be diversified away by investing in both Four Leaf and Red Rock 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 Four Leaf and Red Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Four Leaf Acquisition and Red Rock Resorts, you can compare the effects of market volatilities on Four Leaf and Red Rock 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 Four Leaf with a short position of Red Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Leaf and Red Rock.
Diversification Opportunities for Four Leaf and Red Rock
Very good diversification
The 3 months correlation between Four and Red is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Four Leaf Acquisition and Red Rock Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Rock Resorts and Four Leaf 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 Four Leaf Acquisition are associated (or correlated) with Red Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Rock Resorts has no effect on the direction of Four Leaf i.e., Four Leaf and Red Rock go up and down completely randomly.
Pair Corralation between Four Leaf and Red Rock
Assuming the 90 days horizon Four Leaf Acquisition is expected to generate 11.23 times more return on investment than Red Rock. However, Four Leaf is 11.23 times more volatile than Red Rock Resorts. It trades about 0.15 of its potential returns per unit of risk. Red Rock Resorts is currently generating about 0.09 per unit of risk. If you would invest 2.83 in Four Leaf Acquisition on July 8, 2025 and sell it today you would earn a total of 1.23 from holding Four Leaf Acquisition or generate 43.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.31% |
| Values | Daily Returns |
Four Leaf Acquisition vs. Red Rock Resorts
Performance |
| Timeline |
| Four Leaf Acquisition |
| Red Rock Resorts |
Four Leaf and Red Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Leaf and Red Rock
The main advantage of trading using opposite Four Leaf and Red Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Leaf position performs unexpectedly, Red Rock 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 Rock will offset losses from the drop in Red Rock's long position.| Four Leaf vs. Actinogen Medical Limited | Four Leaf vs. Bangkok Dusit Medical | Four Leaf vs. Talis Biomedical Corp | Four Leaf vs. Kelvin Medical |
| Red Rock vs. Monarch Casino Resort | Red Rock vs. Golden Entertainment | Red Rock vs. Ballys Corp | Red Rock vs. Century Casinos |
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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