Correlation Between Turning Point and Bullfrog
Can any of the company-specific risk be diversified away by investing in both Turning Point 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 Turning Point and Bullfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turning Point Brands and Bullfrog AI Holdings,, you can compare the effects of market volatilities on Turning Point 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 Turning Point with a short position of Bullfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and Bullfrog.
Diversification Opportunities for Turning Point and Bullfrog
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turning and Bullfrog is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands 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 Turning Point 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 Turning Point Brands 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 Turning Point i.e., Turning Point and Bullfrog go up and down completely randomly.
Pair Corralation between Turning Point and Bullfrog
Considering the 90-day investment horizon Turning Point Brands is expected to under-perform the Bullfrog. But the stock apears to be less risky and, when comparing its historical volatility, Turning Point Brands is 6.96 times less risky than Bullfrog. The stock trades about -0.07 of its potential returns per unit of risk. The Bullfrog AI Holdings, is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turning Point Brands vs. Bullfrog AI Holdings,
Performance |
| Timeline |
| Turning Point Brands |
| Bullfrog AI Holdings, |
Turning Point and Bullfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and Bullfrog
The main advantage of trading using opposite Turning Point and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point 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.| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
| Bullfrog vs. Turning Point Brands | Bullfrog vs. Pinterest | Bullfrog vs. Altria Group | Bullfrog vs. Westrock Coffee |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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