Correlation Between Bullfrog and Healthcare Triangle

Can any of the company-specific risk be diversified away by investing in both Bullfrog and Healthcare Triangle 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 Bullfrog and Healthcare Triangle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bullfrog AI Holdings, and Healthcare Triangle, you can compare the effects of market volatilities on Bullfrog and Healthcare Triangle 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 Bullfrog with a short position of Healthcare Triangle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullfrog and Healthcare Triangle.

Diversification Opportunities for Bullfrog and Healthcare Triangle

0.18

Correlation Coefficient

Bullfrog  Healthcare Triangle

Average diversification

The 3 months correlation between Bullfrog and Healthcare is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bullfrog AI Holdings, and Healthcare Triangle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Triangle and Bullfrog 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 Bullfrog AI Holdings, are associated (or correlated) with Healthcare Triangle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Triangle has no effect on the direction of Bullfrog i.e., Bullfrog and Healthcare Triangle go up and down completely randomly.

Pair Corralation between Bullfrog and Healthcare Triangle

Given the investment horizon of 90 days Bullfrog AI Holdings, is expected to generate 0.53 times more return on investment than Healthcare Triangle. However, Bullfrog AI Holdings, is 1.88 times less risky than Healthcare Triangle. It trades about 0.0 of its potential returns per unit of risk. Healthcare Triangle is currently generating about -0.05 per unit of risk. If you would invest  200.00  in Bullfrog AI Holdings, on December 31, 2024 and sell it today you would lose (30.00) from holding Bullfrog AI Holdings, or give up 15.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bullfrog AI Holdings,  vs.  Healthcare Triangle

Bullfrog AI Holdings,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bullfrog AI Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bullfrog is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Healthcare Triangle

Risk-Adjusted Performance

Very Weak

Over the last 90 days Healthcare Triangle has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Bullfrog and Healthcare Triangle

The main advantage of trading using opposite Bullfrog and Healthcare Triangle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullfrog position performs unexpectedly, Healthcare Triangle 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 Healthcare Triangle will offset losses from the drop in Healthcare Triangle's long position.

The idea behind Bullfrog AI Holdings, and Healthcare Triangle pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.