Correlation Between United States and Bullfrog
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and Bullfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Bullfrog AI Holdings,, you can compare the effects of market volatilities on United States 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 United States with a short position of Bullfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Bullfrog.
Diversification Opportunities for United States and Bullfrog
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Bullfrog is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel 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 United States 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 United States Steel 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 United States i.e., United States and Bullfrog go up and down completely randomly.
Pair Corralation between United States and Bullfrog
Taking into account the 90-day investment horizon United States Steel is expected to under-perform the Bullfrog. But the stock apears to be less risky and, when comparing its historical volatility, United States Steel is 4.76 times less risky than Bullfrog. The stock trades about -0.01 of its potential returns per unit of risk. The Bullfrog AI Holdings, is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Bullfrog AI Holdings, on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Bullfrog AI Holdings, or generate 69.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
United States Steel vs. Bullfrog AI Holdings,
Performance |
| Timeline |
| United States Steel |
| Bullfrog AI Holdings, |
United States and Bullfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Bullfrog
The main advantage of trading using opposite United States and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. Fortitude Gold Corp | United States vs. New Gold | United States vs. Galiano Gold | United States vs. GoldMining |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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