Correlation Between Bullfrog and Etao International
Can any of the company-specific risk be diversified away by investing in both Bullfrog and Etao International 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 Bullfrog and Etao International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bullfrog AI Holdings, and Etao International Co,, you can compare the effects of market volatilities on Bullfrog and Etao International 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 Bullfrog with a short position of Etao International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullfrog and Etao International.
Diversification Opportunities for Bullfrog and Etao International
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bullfrog and Etao is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bullfrog AI Holdings, and Etao International Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etao International Co, and Bullfrog 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 Bullfrog AI Holdings, are associated (or correlated) with Etao International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etao International Co, has no effect on the direction of Bullfrog i.e., Bullfrog and Etao International go up and down completely randomly.
Pair Corralation between Bullfrog and Etao International
Given the investment horizon of 90 days Bullfrog AI Holdings, is expected to generate 0.23 times more return on investment than Etao International. However, Bullfrog AI Holdings, is 4.29 times less risky than Etao International. It trades about 0.0 of its potential returns per unit of risk. Etao International Co, is currently generating about -0.06 per unit of risk. If you would invest 289.00 in Bullfrog AI Holdings, on August 29, 2024 and sell it today you would lose (75.00) from holding Bullfrog AI Holdings, or give up 25.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.22% |
| Values | Daily Returns |
Bullfrog AI Holdings, vs. Etao International Co,
Performance |
| Timeline |
| Bullfrog AI Holdings, |
| Etao International Co, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bullfrog and Etao International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bullfrog and Etao International
The main advantage of trading using opposite Bullfrog and Etao International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullfrog position performs unexpectedly, Etao International 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 Etao International will offset losses from the drop in Etao International's long position.| Bullfrog vs. Healthcare Triangle | Bullfrog vs. EUDA Health Holdings | Bullfrog vs. Mangoceuticals, Common Stock | Bullfrog vs. FOXO Technologies |
| Etao International vs. FOXO Technologies | Etao International vs. Mangoceuticals, Common Stock | Etao International vs. Healthcare Triangle | Etao International vs. EUDA Health Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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