Correlation Between Altria and Bullfrog
Can any of the company-specific risk be diversified away by investing in both Altria and Bullfrog 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 Altria and Bullfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altria Group and Bullfrog AI Holdings,, you can compare the effects of market volatilities on Altria and Bullfrog 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 Altria with a short position of Bullfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altria and Bullfrog.
Diversification Opportunities for Altria and Bullfrog
Very good diversification
The 3 months correlation between Altria and Bullfrog is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Altria Group and Bullfrog AI Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bullfrog AI Holdings, and Altria 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 Altria Group are associated (or correlated) with Bullfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bullfrog AI Holdings, has no effect on the direction of Altria i.e., Altria and Bullfrog go up and down completely randomly.
Pair Corralation between Altria and Bullfrog
Allowing for the 90-day total investment horizon Altria is expected to generate 7.2 times less return on investment than Bullfrog. But when comparing it to its historical volatility, Altria Group is 10.61 times less risky than Bullfrog. It trades about 0.05 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Bullfrog AI Holdings, on November 2, 2024 and sell it today you would lose (590.00) from holding Bullfrog AI Holdings, or give up 90.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Altria Group vs. Bullfrog AI Holdings,
Performance |
| Timeline |
| Altria Group |
| Bullfrog AI Holdings, |
Altria and Bullfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altria and Bullfrog
The main advantage of trading using opposite Altria and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altria position performs unexpectedly, Bullfrog 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 Bullfrog will offset losses from the drop in Bullfrog's long position.| Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
| Bullfrog vs. RCI Hospitality Holdings | Bullfrog vs. Enzyme Environmental Solutions | Bullfrog vs. Lizhan Environmental | Bullfrog vs. Gfl Environmental 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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