Correlation Between Caduceus Software and Bullfrog

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

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

Diversification Opportunities for Caduceus Software and Bullfrog

0.51

Correlation Coefficient

Caduceus Software  Bullfrog

Very weak diversification

The 3 months correlation between Caduceus and Bullfrog is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Caduceus Software Systems 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 Caduceus Software 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 Caduceus Software Systems 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 Caduceus Software i.e., Caduceus Software and Bullfrog go up and down completely randomly.

Pair Corralation between Caduceus Software and Bullfrog

Given the investment horizon of 90 days Caduceus Software Systems is expected to generate 2.17 times more return on investment than Bullfrog. However, Caduceus Software is 2.17 times more volatile than Bullfrog AI Holdings,. It trades about 0.08 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about -0.01 per unit of risk. If you would invest  0.55  in Caduceus Software Systems on December 30, 2024 and sell it today you would earn a total of  0.05  from holding Caduceus Software Systems or generate 9.09% return on investment over 90 days.

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

Caduceus Software Systems  vs.  Bullfrog AI Holdings,

Caduceus Software Systems

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Caduceus Software Systems are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Caduceus Software exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 latest inconsistent performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Caduceus Software and Bullfrog

The main advantage of trading using opposite Caduceus Software and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caduceus Software 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.

The idea behind Caduceus Software Systems and Bullfrog AI 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.