Correlation Between Full House and Bluegreen Vacations

Can any of the company-specific risk be diversified away by investing in both Full House 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 Full House and Bluegreen Vacations into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Full House Resorts and Bluegreen Vacations, you can compare the effects of market volatilities on Full House 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 Full House with a short position of Bluegreen Vacations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full House and Bluegreen Vacations.

Diversification Opportunities for Full House and Bluegreen Vacations

0.0

Correlation Coefficient

Full House  Bluegreen Vacations

Pay attention - limited upside

The 3 months correlation between Full and Bluegreen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Full House Resorts and Bluegreen Vacations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluegreen Vacations and Full House 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 Full House Resorts 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 Full House i.e., Full House and Bluegreen Vacations go up and down completely randomly.

Pair Corralation between Full House and Bluegreen Vacations

If you would invest (100.00) in Bluegreen Vacations on January 26, 2024 and sell it today you would earn a total of  100.00  from holding Bluegreen Vacations 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

Full House Resorts  vs.  Bluegreen Vacations

Full House Resorts

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Full House Resorts are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, Full House may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Bluegreen Vacations

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bluegreen Vacations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bluegreen Vacations is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Full House and Bluegreen Vacations

The main advantage of trading using opposite Full House and Bluegreen Vacations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full House 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.

The idea behind Full House Resorts and Bluegreen Vacations pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.