Correlation Between Varex Imaging and Bullfrog
Can any of the company-specific risk be diversified away by investing in both Varex Imaging 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 Varex Imaging and Bullfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Bullfrog AI Holdings,, you can compare the effects of market volatilities on Varex Imaging 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 Varex Imaging with a short position of Bullfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Bullfrog.
Diversification Opportunities for Varex Imaging and Bullfrog
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Varex and Bullfrog is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp 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 Varex Imaging 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 Varex Imaging Corp 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 Varex Imaging i.e., Varex Imaging and Bullfrog go up and down completely randomly.
Pair Corralation between Varex Imaging and Bullfrog
Given the investment horizon of 90 days Varex Imaging is expected to generate 2.28 times less return on investment than Bullfrog. But when comparing it to its historical volatility, Varex Imaging Corp is 5.31 times less risky than Bullfrog. It trades about 0.43 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 |
Varex Imaging Corp vs. Bullfrog AI Holdings,
Performance |
| Timeline |
| Varex Imaging Corp |
| Bullfrog AI Holdings, |
Varex Imaging and Bullfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Bullfrog
The main advantage of trading using opposite Varex Imaging and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging 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.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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