Correlation Between Guardforce and Zedcor

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

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

Diversification Opportunities for Guardforce and Zedcor

0.01

Correlation Coefficient

Guardforce  Zedcor

Significant diversification

The 3 months correlation between Guardforce and Zedcor is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Zedcor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedcor Inc and Guardforce 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 Guardforce AI Co are associated (or correlated) with Zedcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedcor Inc has no effect on the direction of Guardforce i.e., Guardforce and Zedcor go up and down completely randomly.

Pair Corralation between Guardforce and Zedcor

Given the investment horizon of 90 days Guardforce is expected to generate 1.16 times less return on investment than Zedcor. In addition to that, Guardforce is 1.61 times more volatile than Zedcor Inc. It trades about 0.2 of its total potential returns per unit of risk. Zedcor Inc is currently generating about 0.37 per unit of volatility. If you would invest  185.00  in Zedcor Inc on September 5, 2024 and sell it today you would earn a total of  55.00  from holding Zedcor Inc or generate 29.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Guardforce AI Co  vs.  Zedcor Inc

Guardforce AI

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Guardforce demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Zedcor Inc

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zedcor Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Zedcor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Guardforce and Zedcor

The main advantage of trading using opposite Guardforce and Zedcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Zedcor 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 Zedcor will offset losses from the drop in Zedcor's long position.

The idea behind Guardforce AI Co and Zedcor Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.