Correlation Between Guardforce and ANSYS

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

Diversification Opportunities for Guardforce and ANSYS

0.18

Correlation Coefficient

Guardforce  ANSYS

Average diversification

The 3 months correlation between Guardforce and ANSYS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS 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 ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Guardforce i.e., Guardforce and ANSYS go up and down completely randomly.

Pair Corralation between Guardforce and ANSYS

Assuming the 90 days horizon Guardforce AI Co is expected to generate 56.31 times more return on investment than ANSYS. However, Guardforce is 56.31 times more volatile than ANSYS Inc. It trades about 0.11 of its potential returns per unit of risk. ANSYS Inc is currently generating about 0.05 per unit of risk. If you would invest  4.00  in Guardforce AI Co on September 24, 2024 and sell it today you would earn a total of  23.30  from holding Guardforce AI Co or generate 582.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	84.34%
Values	Daily Returns

Guardforce AI Co  vs.  ANSYS Inc

Guardforce AI

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, Guardforce showed solid returns over the last few months and may actually be approaching a breakup point.

ANSYS Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANSYS Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ANSYS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Guardforce and ANSYS

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

The idea behind Guardforce AI Co and ANSYS 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.