Correlation Between Bluegreen Vacations and Marriot Vacations

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

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

Diversification Opportunities for Bluegreen Vacations and Marriot Vacations

0.0

Correlation Coefficient

Bluegreen Vacations  Marriot Vacations

Pay attention - limited upside

The 3 months correlation between Bluegreen and Marriot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bluegreen Vacations Holding and Marriot Vacations Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriot Vacations and Bluegreen Vacations 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 Bluegreen Vacations Holding are associated (or correlated) with Marriot Vacations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriot Vacations has no effect on the direction of Bluegreen Vacations i.e., Bluegreen Vacations and Marriot Vacations go up and down completely randomly.

Pair Corralation between Bluegreen Vacations and Marriot Vacations

If you would invest (100.00) in Bluegreen Vacations Holding on December 29, 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

Bluegreen Vacations Holding  vs.  Marriot Vacations Worldwide

Bluegreen Vacations

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bluegreen Vacations Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Bluegreen Vacations is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Marriot Vacations

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marriot Vacations Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Bluegreen Vacations and Marriot Vacations

The main advantage of trading using opposite Bluegreen Vacations and Marriot Vacations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluegreen Vacations position performs unexpectedly, Marriot 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 Marriot Vacations will offset losses from the drop in Marriot Vacations' long position.

The idea behind Bluegreen Vacations Holding and Marriot Vacations Worldwide 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.