Correlation Between Postal Realty and Bullfrog

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

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

Diversification Opportunities for Postal Realty and Bullfrog

0.27

Correlation Coefficient

Postal Realty  Bullfrog

Modest diversification

The 3 months correlation between Postal and Bullfrog is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Postal Realty Trust 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 Postal Realty 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 Postal Realty Trust 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 Postal Realty i.e., Postal Realty and Bullfrog go up and down completely randomly.

Pair Corralation between Postal Realty and Bullfrog

Given the investment horizon of 90 days Postal Realty is expected to generate 7.19 times less return on investment than Bullfrog. But when comparing it to its historical volatility, Postal Realty Trust is 7.36 times less risky than Bullfrog. It trades about 0.09 of its potential returns per unit of risk. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Postal Realty Trust  vs.  Bullfrog AI Holdings,

Postal Realty Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Postal Realty Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Postal Realty may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 Postal Realty and Bullfrog

The main advantage of trading using opposite Postal Realty and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Realty 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 Postal Realty Trust 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.