Correlation Between Bounce Mobile and Mount Logan

Can any of the company-specific risk be diversified away by investing in both Bounce Mobile and Mount Logan 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 Mount Logan 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 Mount Logan Capital, you can compare the effects of market volatilities on Bounce Mobile and Mount Logan 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 Mount Logan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bounce Mobile and Mount Logan.

Diversification Opportunities for Bounce Mobile and Mount Logan

0.47

Correlation Coefficient

Bounce Mobile  Mount Logan

Very weak diversification

The 3 months correlation between Bounce and Mount is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bounce Mobile Systems and Mount Logan Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mount Logan Capital 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 Mount Logan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mount Logan Capital has no effect on the direction of Bounce Mobile i.e., Bounce Mobile and Mount Logan go up and down completely randomly.

Pair Corralation between Bounce Mobile and Mount Logan

Given the investment horizon of 90 days Bounce Mobile Systems is expected to generate 29.17 times more return on investment than Mount Logan. However, Bounce Mobile is 29.17 times more volatile than Mount Logan Capital. It trades about 0.0 of its potential returns per unit of risk. Mount Logan Capital is currently generating about -0.14 per unit of risk. If you would invest  7.10  in Bounce Mobile Systems on September 12, 2024 and sell it today you would lose (4.87) from holding Bounce Mobile Systems or give up 68.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	80.95%
Values	Daily Returns

Bounce Mobile Systems  vs.  Mount Logan Capital

Bounce Mobile Systems

Risk-Adjusted Performance

0 of 100

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 healthy fundamental indicators, Bounce Mobile is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Mount Logan Capital

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bounce Mobile and Mount Logan

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

The idea behind Bounce Mobile Systems and Mount Logan Capital 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.