Correlation Between Titan Machinery and Bullfrog
Can any of the company-specific risk be diversified away by investing in both Titan Machinery 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 Titan Machinery and Bullfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Machinery and Bullfrog AI Holdings,, you can compare the effects of market volatilities on Titan Machinery 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 Titan Machinery with a short position of Bullfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and Bullfrog.
Diversification Opportunities for Titan Machinery and Bullfrog
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Titan and Bullfrog is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery 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 Titan Machinery 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 Titan Machinery 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 Titan Machinery i.e., Titan Machinery and Bullfrog go up and down completely randomly.
Pair Corralation between Titan Machinery and Bullfrog
Given the investment horizon of 90 days Titan Machinery is expected to generate 4.25 times less return on investment than Bullfrog. But when comparing it to its historical volatility, Titan Machinery is 3.72 times less risky than Bullfrog. It trades about 0.16 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Bullfrog AI Holdings, on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Bullfrog AI Holdings, or generate 43.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan Machinery vs. Bullfrog AI Holdings,
Performance |
| Timeline |
| Titan Machinery |
| Bullfrog AI Holdings, |
Titan Machinery and Bullfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Machinery and Bullfrog
The main advantage of trading using opposite Titan Machinery and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Machinery 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.| Titan Machinery vs. DXP Enterprises | Titan Machinery vs. Watsco Inc | Titan Machinery vs. Distribution Solutions Group | Titan Machinery vs. SiteOne Landscape Supply |
| Bullfrog vs. SunLink Health Systems | Bullfrog vs. The Gap, | Bullfrog vs. Grocery Outlet Holding | Bullfrog vs. Titan Machinery |
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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