Correlation Between Trust Stamp and Bullfrog

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

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

Diversification Opportunities for Trust Stamp and Bullfrog

-0.29

Correlation Coefficient

Trust Stamp  Bullfrog

Very good diversification

The 3 months correlation between Trust and Bullfrog is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp 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 Trust Stamp 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 Trust Stamp 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 Trust Stamp i.e., Trust Stamp and Bullfrog go up and down completely randomly.

Pair Corralation between Trust Stamp and Bullfrog

Given the investment horizon of 90 days Trust Stamp is expected to generate 5.73 times less return on investment than Bullfrog. But when comparing it to its historical volatility, Trust Stamp is 3.55 times less risky than Bullfrog. It trades about 0.03 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Bullfrog AI Holdings, on September 28, 2024 and sell it today you would earn a total of  229.00  from holding Bullfrog AI Holdings, or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.58%
Values	Daily Returns

Trust Stamp  vs.  Bullfrog AI Holdings,

Trust Stamp

Risk-Adjusted Performance

12 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trust Stamp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Trust Stamp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Trust Stamp and Bullfrog

The main advantage of trading using opposite Trust Stamp and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp 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 Trust Stamp 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.