Correlation Between Bullfrog and Postal Realty

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

Diversification Opportunities for Bullfrog and Postal Realty

0.27

Correlation Coefficient

Bullfrog  Postal Realty

Modest diversification

The 3 months correlation between Bullfrog and Postal is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bullfrog AI Holdings, and Postal Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Realty Trust 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 Postal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Realty Trust has no effect on the direction of Bullfrog i.e., Bullfrog and Postal Realty go up and down completely randomly.

Pair Corralation between Bullfrog and Postal Realty

Assuming the 90 days horizon Bullfrog AI Holdings, is expected to generate 7.36 times more return on investment than Postal Realty. However, Bullfrog is 7.36 times more volatile than Postal Realty Trust. It trades about 0.09 of its potential returns per unit of risk. Postal Realty Trust is currently generating about 0.09 per unit of risk. If you would invest  43.00  in Bullfrog AI Holdings, on December 30, 2024 and sell it today you would earn a total of  7.00  from holding Bullfrog AI Holdings, or generate 16.28% return on investment over 90 days.

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

Bullfrog AI Holdings,  vs.  Postal Realty Trust

Bullfrog AI Holdings,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bullfrog AI Holdings, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Bullfrog showed solid returns over the last few months and may actually be approaching a breakup point.

Postal Realty Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Postal Realty Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Postal Realty may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Bullfrog and Postal Realty

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

The idea behind Bullfrog AI Holdings, and Postal Realty Trust 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.