Correlation Between Bluegreen Vacations and Playa Hotels
Can any of the company-specific risk be diversified away by investing in both Bluegreen Vacations and Playa Hotels 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 Playa Hotels 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 Playa Hotels Resorts, you can compare the effects of market volatilities on Bluegreen Vacations and Playa Hotels 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 Playa Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluegreen Vacations and Playa Hotels.
Diversification Opportunities for Bluegreen Vacations and Playa Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bluegreen and Playa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bluegreen Vacations Holding and Playa Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playa Hotels Resorts 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 Playa Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playa Hotels Resorts has no effect on the direction of Bluegreen Vacations i.e., Bluegreen Vacations and Playa Hotels go up and down completely randomly.
Pair Corralation between Bluegreen Vacations and Playa Hotels
If you would invest 872.00 in Playa Hotels Resorts on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Playa Hotels Resorts or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bluegreen Vacations Holding vs. Playa Hotels Resorts
Performance |
| Timeline |
| Bluegreen Vacations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Playa Hotels Resorts |
Bluegreen Vacations and Playa Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluegreen Vacations and Playa Hotels
The main advantage of trading using opposite Bluegreen Vacations and Playa Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluegreen Vacations position performs unexpectedly, Playa Hotels 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 Playa Hotels will offset losses from the drop in Playa Hotels' 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 |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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