Correlation Between Bloomin Brands and Monarch Casino
Can any of the company-specific risk be diversified away by investing in both Bloomin Brands and Monarch Casino 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 Bloomin Brands and Monarch Casino into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomin Brands and Monarch Casino Resort, you can compare the effects of market volatilities on Bloomin Brands and Monarch Casino 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 Bloomin Brands with a short position of Monarch Casino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomin Brands and Monarch Casino.
Diversification Opportunities for Bloomin Brands and Monarch Casino
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bloomin and Monarch is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bloomin Brands and Monarch Casino Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monarch Casino Resort and Bloomin Brands 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 Bloomin Brands are associated (or correlated) with Monarch Casino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monarch Casino Resort has no effect on the direction of Bloomin Brands i.e., Bloomin Brands and Monarch Casino go up and down completely randomly.
Pair Corralation between Bloomin Brands and Monarch Casino
Given the investment horizon of 90 days Bloomin Brands is expected to under-perform the Monarch Casino. In addition to that, Bloomin Brands is 4.3 times more volatile than Monarch Casino Resort. It trades about -0.16 of its total potential returns per unit of risk. Monarch Casino Resort is currently generating about 0.4 per unit of volatility. If you would invest 7,912 in Monarch Casino Resort on August 28, 2024 and sell it today you would earn a total of 673.00 from holding Monarch Casino Resort or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bloomin Brands vs. Monarch Casino Resort
Performance |
| Timeline |
| Bloomin Brands |
| Monarch Casino Resort |
Bloomin Brands and Monarch Casino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomin Brands and Monarch Casino
The main advantage of trading using opposite Bloomin Brands and Monarch Casino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomin Brands position performs unexpectedly, Monarch Casino 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 Monarch Casino will offset losses from the drop in Monarch Casino's long position.| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
| Monarch Casino vs. Red Rock Resorts | Monarch Casino vs. Full House Resorts | Monarch Casino vs. Ballys Corp | Monarch Casino vs. Golden Entertainment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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