Correlation Between EUDA Health and Bullfrog

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

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

Diversification Opportunities for EUDA Health and Bullfrog

-0.25

Correlation Coefficient

EUDA Health  Bullfrog

Very good diversification

The 3 months correlation between EUDA and Bullfrog is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings 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 EUDA Health 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 EUDA Health Holdings 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 EUDA Health i.e., EUDA Health and Bullfrog go up and down completely randomly.

Pair Corralation between EUDA Health and Bullfrog

Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 1.08 times more return on investment than Bullfrog. However, EUDA Health is 1.08 times more volatile than Bullfrog AI Holdings,. It trades about 0.02 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about 0.0 per unit of risk. If you would invest  456.00  in EUDA Health Holdings on August 31, 2024 and sell it today you would lose (24.00) from holding EUDA Health Holdings or give up 5.26% of portfolio value over 90 days.

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

EUDA Health Holdings  vs.  Bullfrog AI Holdings,

EUDA Health Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EUDA Health Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental indicators, EUDA Health may actually be approaching a critical reversion point that can send shares even higher in December 2024.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with EUDA Health and Bullfrog

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

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.