Correlation Between Nam Tai and Bluegreen Vacations
Can any of the company-specific risk be diversified away by investing in both Nam Tai 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 Nam Tai and Bluegreen Vacations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nam Tai Property and Bluegreen Vacations Holding, you can compare the effects of market volatilities on Nam Tai 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 Nam Tai with a short position of Bluegreen Vacations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nam Tai and Bluegreen Vacations.
Diversification Opportunities for Nam Tai and Bluegreen Vacations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nam and Bluegreen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nam Tai Property and Bluegreen Vacations Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluegreen Vacations and Nam Tai 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 Nam Tai Property 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 Nam Tai i.e., Nam Tai and Bluegreen Vacations go up and down completely randomly.
Pair Corralation between Nam Tai and Bluegreen Vacations
If you would invest (100.00) in Bluegreen Vacations Holding on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Bluegreen Vacations Holding or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nam Tai Property vs. Bluegreen Vacations Holding
Performance |
| Timeline |
| Nam Tai Property |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bluegreen Vacations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nam Tai and Bluegreen Vacations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nam Tai and Bluegreen Vacations
The main advantage of trading using opposite Nam Tai and Bluegreen Vacations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nam Tai 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.| Nam Tai vs. Ecovyst | Nam Tai vs. Eastman Chemical | Nam Tai vs. Microchip Technology | Nam Tai vs. Ecolab Inc |
| Bluegreen Vacations vs. LanzaTech Global | Bluegreen Vacations vs. Braskem SA Class | Bluegreen Vacations vs. Bank of America | Bluegreen Vacations vs. Gulf Resources |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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