Correlation Between Bounce Mobile and Azimut Holding

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

By analyzing existing cross correlation between Bounce Mobile Systems and Azimut Holding SpA, you can compare the effects of market volatilities on Bounce Mobile and Azimut Holding 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 Bounce Mobile with a short position of Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bounce Mobile and Azimut Holding.

Diversification Opportunities for Bounce Mobile and Azimut Holding

0.0

Correlation Coefficient

Bounce Mobile  Azimut Holding

Pay attention - limited upside

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

Pair Corralation between Bounce Mobile and Azimut Holding

If you would invest  1.78  in Bounce Mobile Systems on December 29, 2024 and sell it today you would lose (0.88) from holding Bounce Mobile Systems or give up 49.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bounce Mobile Systems  vs.  Azimut Holding SpA

Bounce Mobile Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bounce Mobile Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very inconsistent fundamental indicators, Bounce Mobile may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Azimut Holding SpA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Azimut Holding SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Azimut Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bounce Mobile and Azimut Holding

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

The idea behind Bounce Mobile Systems and Azimut Holding SpA 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.