Correlation Between Hilton Grand and Bluegreen Vacations
Can any of the company-specific risk be diversified away by investing in both Hilton Grand and Bluegreen Vacations 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 Grand and Bluegreen Vacations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Grand Vacations and Bluegreen Vacations Holding, you can compare the effects of market volatilities on Hilton Grand and Bluegreen Vacations 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 Grand with a short position of Bluegreen Vacations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Grand and Bluegreen Vacations.
Diversification Opportunities for Hilton Grand and Bluegreen Vacations
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hilton and Bluegreen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Grand Vacations and Bluegreen Vacations Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluegreen Vacations and Hilton Grand 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 Grand Vacations are associated (or correlated) with Bluegreen Vacations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluegreen Vacations has no effect on the direction of Hilton Grand i.e., Hilton Grand and Bluegreen Vacations go up and down completely randomly.
Pair Corralation between Hilton Grand and Bluegreen Vacations
Considering the 90-day investment horizon Hilton Grand is expected to generate 19.78 times less return on investment than Bluegreen Vacations. But when comparing it to its historical volatility, Hilton Grand Vacations is 1.47 times less risky than Bluegreen Vacations. It trades about 0.01 of its potential returns per unit of risk. Bluegreen Vacations Holding is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,166 in Bluegreen Vacations Holding on August 24, 2024 and sell it today you would earn a total of 1,479 from holding Bluegreen Vacations Holding or generate 68.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.06% |
| Values | Daily Returns |
Hilton Grand Vacations vs. Bluegreen Vacations Holding
Performance |
| Timeline |
| Hilton Grand Vacations |
| Bluegreen Vacations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hilton Grand and Bluegreen Vacations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Grand and Bluegreen Vacations
The main advantage of trading using opposite Hilton Grand and Bluegreen Vacations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Grand position performs unexpectedly, Bluegreen Vacations 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 Bluegreen Vacations will offset losses from the drop in Bluegreen Vacations' long position.| Hilton Grand vs. Vail Resorts | Hilton Grand vs. Monarch Casino Resort | Hilton Grand vs. Playa Hotels Resorts | Hilton Grand vs. Studio City International |
| Bluegreen Vacations vs. Marriot Vacations Worldwide | Bluegreen Vacations vs. Vail Resorts | Bluegreen Vacations vs. Monarch Casino Resort | Bluegreen Vacations vs. Studio City International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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