Correlation Between Bullfrog and Science 37

Can any of the company-specific risk be diversified away by investing in both Bullfrog and Science 37 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 Science 37 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 Science 37 Holdings, you can compare the effects of market volatilities on Bullfrog and Science 37 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 Science 37. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullfrog and Science 37.

Diversification Opportunities for Bullfrog and Science 37

0.08

Correlation Coefficient

Bullfrog  Science 37

Significant diversification

The 3 months correlation between Bullfrog and Science is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bullfrog AI Holdings, and Science 37 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science 37 Holdings 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 Science 37. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science 37 Holdings has no effect on the direction of Bullfrog i.e., Bullfrog and Science 37 go up and down completely randomly.

Pair Corralation between Bullfrog and Science 37

If you would invest  235.00  in Bullfrog AI Holdings, on September 2, 2024 and sell it today you would lose (20.00) from holding Bullfrog AI Holdings, or give up 8.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Bullfrog AI Holdings,  vs.  Science 37 Holdings

Bullfrog AI Holdings,

Risk-Adjusted Performance

0 of 100

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.

Science 37 Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Science 37 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Science 37 is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bullfrog and Science 37

The main advantage of trading using opposite Bullfrog and Science 37 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullfrog position performs unexpectedly, Science 37 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 Science 37 will offset losses from the drop in Science 37's long position.

The idea behind Bullfrog AI Holdings, and Science 37 Holdings 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.