Correlation Between Weave Communications and Bullfrog
Can any of the company-specific risk be diversified away by investing in both Weave Communications 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 Weave Communications and Bullfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weave Communications and Bullfrog AI Holdings,, you can compare the effects of market volatilities on Weave Communications 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 Weave Communications with a short position of Bullfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weave Communications and Bullfrog.
Diversification Opportunities for Weave Communications and Bullfrog
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Weave and Bullfrog is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Weave Communications 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 Weave Communications 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 Weave Communications 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 Weave Communications i.e., Weave Communications and Bullfrog go up and down completely randomly.
Pair Corralation between Weave Communications and Bullfrog
Given the investment horizon of 90 days Weave Communications is expected to generate 11.09 times less return on investment than Bullfrog. But when comparing it to its historical volatility, Weave Communications is 6.88 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 0.25 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Bullfrog AI Holdings, on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Bullfrog AI Holdings, or generate 85.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Weave Communications vs. Bullfrog AI Holdings,
Performance |
| Timeline |
| Weave Communications |
| Bullfrog AI Holdings, |
Weave Communications and Bullfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weave Communications and Bullfrog
The main advantage of trading using opposite Weave Communications and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weave Communications 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.| Weave Communications vs. Clearwater Analytics Holdings | Weave Communications vs. Expensify | Weave Communications vs. Enfusion | Weave Communications vs. VTEX |
| Bullfrog vs. Summit Environmental | Bullfrog vs. Sphere Entertainment Co | Bullfrog vs. United States Steel | Bullfrog vs. Insteel Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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