Correlation Between Guardforce and Guardforce

Can any of the company-specific risk be diversified away by investing in both Guardforce and Guardforce 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 Guardforce 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 Guardforce AI Co, you can compare the effects of market volatilities on Guardforce and Guardforce 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 Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Guardforce.

Diversification Opportunities for Guardforce and Guardforce

0.12

Correlation Coefficient

Guardforce  Guardforce

Average diversification

The 3 months correlation between Guardforce and Guardforce is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI 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 Guardforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardforce AI has no effect on the direction of Guardforce i.e., Guardforce and Guardforce go up and down completely randomly.

Pair Corralation between Guardforce and Guardforce

Given the investment horizon of 90 days Guardforce AI Co is expected to generate 0.21 times more return on investment than Guardforce. However, Guardforce AI Co is 4.87 times less risky than Guardforce. It trades about 0.01 of its potential returns per unit of risk. Guardforce AI Co is currently generating about -0.01 per unit of risk. If you would invest  124.00  in Guardforce AI Co on August 30, 2024 and sell it today you would lose (2.00) from holding Guardforce AI Co or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	73.02%
Values	Daily Returns

Guardforce AI Co  vs.  Guardforce AI Co

Guardforce AI

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Guardforce is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Guardforce AI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guardforce AI Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Guardforce and Guardforce

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

The idea behind Guardforce AI Co and Guardforce AI Co 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.

Check out your portfolio center.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.