Correlation Between Bluegreen Vacations and Golden Entertainment
Can any of the company-specific risk be diversified away by investing in both Bluegreen Vacations and Golden Entertainment 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 Bluegreen Vacations and Golden Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluegreen Vacations Holding and Golden Entertainment, you can compare the effects of market volatilities on Bluegreen Vacations and Golden Entertainment 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 Bluegreen Vacations with a short position of Golden Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluegreen Vacations and Golden Entertainment.
Diversification Opportunities for Bluegreen Vacations and Golden Entertainment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bluegreen and Golden is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bluegreen Vacations Holding and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment and Bluegreen Vacations 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 Bluegreen Vacations Holding are associated (or correlated) with Golden Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Entertainment has no effect on the direction of Bluegreen Vacations i.e., Bluegreen Vacations and Golden Entertainment go up and down completely randomly.
Pair Corralation between Bluegreen Vacations and Golden Entertainment
Considering the 90-day investment horizon Bluegreen Vacations Holding is expected to generate 1.47 times more return on investment than Golden Entertainment. However, Bluegreen Vacations is 1.47 times more volatile than Golden Entertainment. It trades about 0.04 of its potential returns per unit of risk. Golden Entertainment is currently generating about 0.0 per unit of risk. If you would invest 3,269 in Bluegreen Vacations Holding on October 23, 2024 and sell it today you would earn a total of 376.00 from holding Bluegreen Vacations Holding or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.29% |
| Values | Daily Returns |
Bluegreen Vacations Holding vs. Golden Entertainment
Performance |
| Timeline |
| Bluegreen Vacations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Golden Entertainment |
Bluegreen Vacations and Golden Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluegreen Vacations and Golden Entertainment
The main advantage of trading using opposite Bluegreen Vacations and Golden Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluegreen Vacations position performs unexpectedly, Golden Entertainment 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 Golden Entertainment will offset losses from the drop in Golden Entertainment's long position.| Bluegreen Vacations vs. Marriot Vacations Worldwide | Bluegreen Vacations vs. Vail Resorts | Bluegreen Vacations vs. Monarch Casino Resort | Bluegreen Vacations vs. Studio City International |
| Golden Entertainment vs. Red Rock Resorts | Golden Entertainment vs. Century Casinos | Golden Entertainment vs. Studio City International | Golden Entertainment vs. Ballys Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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