Correlation Between EUDA Health and Bullfrog

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

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

Diversification Opportunities for EUDA Health and Bullfrog

-0.23

Correlation Coefficient

EUDA Health  Bullfrog

Very good diversification

The 3 months correlation between EUDA and Bullfrog is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings 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 EUDA Health 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 EUDA Health Holdings 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 EUDA Health i.e., EUDA Health and Bullfrog go up and down completely randomly.

Pair Corralation between EUDA Health and Bullfrog

Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 0.95 times more return on investment than Bullfrog. However, EUDA Health Holdings is 1.05 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 0.02 per unit of risk. If you would invest  143.00  in EUDA Health Holdings on August 29, 2024 and sell it today you would earn a total of  289.00  from holding EUDA Health Holdings or generate 202.1% return on investment over 90 days.

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

EUDA Health Holdings  vs.  Bullfrog AI Holdings,

EUDA Health Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EUDA Health Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, EUDA Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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 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 EUDA Health and Bullfrog

The main advantage of trading using opposite EUDA Health and Bullfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health 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 EUDA Health Holdings 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.