Correlation Between MarineMax and Bowlin Travel
Can any of the company-specific risk be diversified away by investing in both MarineMax and Bowlin Travel 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 MarineMax and Bowlin Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MarineMax and Bowlin Travel Centers, you can compare the effects of market volatilities on MarineMax and Bowlin Travel 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 MarineMax with a short position of Bowlin Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarineMax and Bowlin Travel.
Diversification Opportunities for MarineMax and Bowlin Travel
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MarineMax and Bowlin is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding MarineMax and Bowlin Travel Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowlin Travel Centers and MarineMax 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 MarineMax are associated (or correlated) with Bowlin Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowlin Travel Centers has no effect on the direction of MarineMax i.e., MarineMax and Bowlin Travel go up and down completely randomly.
Pair Corralation between MarineMax and Bowlin Travel
Considering the 90-day investment horizon MarineMax is expected to generate 1.48 times more return on investment than Bowlin Travel. However, MarineMax is 1.48 times more volatile than Bowlin Travel Centers. It trades about 0.02 of its potential returns per unit of risk. Bowlin Travel Centers is currently generating about 0.0 per unit of risk. If you would invest 2,972 in MarineMax on August 24, 2024 and sell it today you would earn a total of 71.50 from holding MarineMax or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MarineMax vs. Bowlin Travel Centers
Performance |
| Timeline |
| MarineMax |
| Bowlin Travel Centers |
MarineMax and Bowlin Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MarineMax and Bowlin Travel
The main advantage of trading using opposite MarineMax and Bowlin Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarineMax position performs unexpectedly, Bowlin Travel 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 Bowlin Travel will offset losses from the drop in Bowlin Travel's long position.| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
| Bowlin Travel vs. Citi Trends | Bowlin Travel vs. Everspin Technologies | Bowlin Travel vs. Skechers USA | Bowlin Travel vs. Kontoor Brands |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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