Correlation Between Healthcare Triangle and Bullfrog

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

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

Diversification Opportunities for Healthcare Triangle and Bullfrog

0.18

Correlation Coefficient

Healthcare Triangle  Bullfrog

Average diversification

The 3 months correlation between Healthcare and Bullfrog is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Triangle 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 Healthcare Triangle 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 Healthcare Triangle 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 Healthcare Triangle i.e., Healthcare Triangle and Bullfrog go up and down completely randomly.

Pair Corralation between Healthcare Triangle and Bullfrog

Given the investment horizon of 90 days Healthcare Triangle is expected to under-perform the Bullfrog. In addition to that, Healthcare Triangle is 1.88 times more volatile than Bullfrog AI Holdings,. It trades about -0.05 of its total potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about 0.0 per unit of volatility. 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

Healthcare Triangle  vs.  Bullfrog AI Holdings,

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.

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.

Pair Trading with Healthcare Triangle and Bullfrog

The main advantage of trading using opposite Healthcare Triangle and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Triangle 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 Healthcare Triangle 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.