Correlation Between NETGEAR and Bullfrog

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

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

Diversification Opportunities for NETGEAR and Bullfrog

0.03

Correlation Coefficient

NETGEAR  Bullfrog

Significant diversification

The 3 months correlation between NETGEAR and Bullfrog is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR 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 NETGEAR 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 NETGEAR 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 NETGEAR i.e., NETGEAR and Bullfrog go up and down completely randomly.

Pair Corralation between NETGEAR and Bullfrog

Given the investment horizon of 90 days NETGEAR is expected to under-perform the Bullfrog. But the stock apears to be less risky and, when comparing its historical volatility, NETGEAR is 5.73 times less risky than Bullfrog. The stock trades about -0.06 of its potential returns per unit of risk. The Bullfrog AI Holdings, is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

NETGEAR  vs.  Bullfrog AI Holdings,

NETGEAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days NETGEAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

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.

Pair Trading with NETGEAR and Bullfrog

The main advantage of trading using opposite NETGEAR and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR 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 NETGEAR 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.