Correlation Between Monarch Casino and Bluegreen Vacations
Can any of the company-specific risk be diversified away by investing in both Monarch Casino 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 Monarch Casino and Bluegreen Vacations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monarch Casino Resort and Bluegreen Vacations Holding, you can compare the effects of market volatilities on Monarch Casino 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 Monarch Casino with a short position of Bluegreen Vacations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Casino and Bluegreen Vacations.
Diversification Opportunities for Monarch Casino and Bluegreen Vacations
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Monarch and Bluegreen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Casino Resort and Bluegreen Vacations Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluegreen Vacations and Monarch Casino 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 Monarch Casino Resort 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 Monarch Casino i.e., Monarch Casino and Bluegreen Vacations go up and down completely randomly.
Pair Corralation between Monarch Casino and Bluegreen Vacations
If you would invest 6,806 in Monarch Casino Resort on November 3, 2024 and sell it today you would earn a total of 1,728 from holding Monarch Casino Resort or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Monarch Casino Resort vs. Bluegreen Vacations Holding
Performance |
| Timeline |
| Monarch Casino Resort |
| Bluegreen Vacations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Monarch Casino and Bluegreen Vacations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monarch Casino and Bluegreen Vacations
The main advantage of trading using opposite Monarch Casino and Bluegreen Vacations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch Casino 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.| Monarch Casino vs. Red Rock Resorts | Monarch Casino vs. Full House Resorts | Monarch Casino vs. Ballys Corp | Monarch Casino vs. Golden Entertainment |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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