Correlation Between Penn National and Bluegreen Vacations
Can any of the company-specific risk be diversified away by investing in both Penn National 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 Penn National and Bluegreen Vacations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penn National Gaming and Bluegreen Vacations Holding, you can compare the effects of market volatilities on Penn National 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 Penn National with a short position of Bluegreen Vacations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and Bluegreen Vacations.
Diversification Opportunities for Penn National and Bluegreen Vacations
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Penn and Bluegreen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and Bluegreen Vacations Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluegreen Vacations and Penn National 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 Penn National Gaming 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 Penn National i.e., Penn National and Bluegreen Vacations go up and down completely randomly.
Pair Corralation between Penn National and Bluegreen Vacations
If you would invest 2,070 in Penn National Gaming on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Penn National Gaming or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Penn National Gaming vs. Bluegreen Vacations Holding
Performance |
| Timeline |
| Penn National Gaming |
| Bluegreen Vacations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Penn National and Bluegreen Vacations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and Bluegreen Vacations
The main advantage of trading using opposite Penn National and Bluegreen Vacations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National 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.| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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