Correlation Between Applied Opt and Bullfrog

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

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

Diversification Opportunities for Applied Opt and Bullfrog

-0.77

Correlation Coefficient

Applied Opt  Bullfrog

Pay attention - limited upside

The 3 months correlation between Applied and Bullfrog is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Applied Opt 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 Applied Opt 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 Applied Opt 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 Applied Opt i.e., Applied Opt and Bullfrog go up and down completely randomly.

Pair Corralation between Applied Opt and Bullfrog

Given the investment horizon of 90 days Applied Opt is expected to generate 1.85 times more return on investment than Bullfrog. However, Applied Opt is 1.85 times more volatile than Bullfrog AI Holdings,. It trades about 0.13 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about -0.13 per unit of risk. If you would invest  1,444  in Applied Opt on May 5, 2025 and sell it today you would earn a total of  709.00  from holding Applied Opt or generate 49.1% return on investment over 90 days.

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

Applied Opt  vs.  Bullfrog AI Holdings,

Applied Opt

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Opt are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Applied Opt demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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

Pair Trading with Applied Opt and Bullfrog

The main advantage of trading using opposite Applied Opt and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Opt 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 Applied Opt 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.