Correlation Between Bullfrog and Sea
Can any of the company-specific risk be diversified away by investing in both Bullfrog and Sea 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 Sea 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 Sea, you can compare the effects of market volatilities on Bullfrog and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullfrog and Sea.
Diversification Opportunities for Bullfrog and Sea
Very good diversification
The 3 months correlation between Bullfrog and Sea is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bullfrog AI Holdings, and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Bullfrog i.e., Bullfrog and Sea go up and down completely randomly.
Pair Corralation between Bullfrog and Sea
Assuming the 90 days horizon Bullfrog AI Holdings, is expected to generate 13.73 times more return on investment than Sea. However, Bullfrog is 13.73 times more volatile than Sea. It trades about 0.05 of its potential returns per unit of risk. Sea is currently generating about 0.05 per unit of risk. If you would invest 0.00 in Bullfrog AI Holdings, on September 5, 2024 and sell it today you would earn a total of 37.00 from holding Bullfrog AI Holdings, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.33% |
| Values | Daily Returns |
Bullfrog AI Holdings, vs. Sea
Performance |
| Timeline |
| Bullfrog AI Holdings, |
| Sea |
Bullfrog and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bullfrog and Sea
The main advantage of trading using opposite Bullfrog and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullfrog position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| Bullfrog vs. Baxter International | Bullfrog vs. West Pharmaceutical Services | Bullfrog vs. ResMed Inc | Bullfrog vs. The Cooper Companies, |
| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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