Correlation Between Bounce Mobile and Flow Capital
Can any of the company-specific risk be diversified away by investing in both Bounce Mobile and Flow Capital 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 Flow Capital 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 Flow Capital Corp, you can compare the effects of market volatilities on Bounce Mobile and Flow Capital 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 Flow Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bounce Mobile and Flow Capital.
Diversification Opportunities for Bounce Mobile and Flow Capital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bounce and Flow is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bounce Mobile Systems and Flow Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Capital Corp 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 Flow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Capital Corp has no effect on the direction of Bounce Mobile i.e., Bounce Mobile and Flow Capital go up and down completely randomly.
Pair Corralation between Bounce Mobile and Flow Capital
If you would invest 2.20 in Bounce Mobile Systems on October 24, 2024 and sell it today you would lose (0.11) from holding Bounce Mobile Systems or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bounce Mobile Systems vs. Flow Capital Corp
Performance |
| Timeline |
| Bounce Mobile Systems |
| Flow Capital Corp |
Bounce Mobile and Flow Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bounce Mobile and Flow Capital
The main advantage of trading using opposite Bounce Mobile and Flow Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bounce Mobile position performs unexpectedly, Flow Capital 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 Flow Capital will offset losses from the drop in Flow Capital's long position.| Bounce Mobile vs. Limitless Venture | Bounce Mobile vs. Guardian Capital Group | Bounce Mobile vs. Princeton Capital | Bounce Mobile vs. SMC Entertainment |
| Flow Capital vs. Guardian Capital Group | Flow Capital vs. Urbana | Flow Capital vs. Princeton Capital | Flow Capital vs. Blackhawk Growth Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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