Correlation Between Bullfrog and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Bullfrog and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Bullfrog and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullfrog and Dow Jones.
Diversification Opportunities for Bullfrog and Dow Jones
Good diversification
The 3 months correlation between Bullfrog and Dow is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bullfrog AI Holdings, and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bullfrog i.e., Bullfrog and Dow Jones go up and down completely randomly.
Pair Corralation between Bullfrog and Dow Jones
Assuming the 90 days horizon Bullfrog AI Holdings, is expected to generate 16.73 times more return on investment than Dow Jones. However, Bullfrog is 16.73 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 50.00 in Bullfrog AI Holdings, on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Bullfrog AI Holdings, or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bullfrog AI Holdings, vs. Dow Jones Industrial
Performance |
| Timeline |
Bullfrog and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bullfrog AI Holdings,
Pair trading matchups for Bullfrog
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bullfrog and Dow Jones
The main advantage of trading using opposite Bullfrog and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullfrog position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Bullfrog vs. Turning Point Brands | Bullfrog vs. Pinterest | Bullfrog vs. Altria Group | Bullfrog vs. Westrock Coffee |
| Dow Jones vs. SkyWest | Dow Jones vs. Air Transport Services | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Emerson Radio |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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