Correlation Between Guardforce and Brady

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

Diversification Opportunities for Guardforce and Brady

0.24

Correlation Coefficient

Guardforce  Brady

Modest diversification

The 3 months correlation between Guardforce and Brady is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Brady in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brady 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 Brady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brady has no effect on the direction of Guardforce i.e., Guardforce and Brady go up and down completely randomly.

Pair Corralation between Guardforce and Brady

Assuming the 90 days horizon Guardforce AI Co is expected to under-perform the Brady. In addition to that, Guardforce is 14.01 times more volatile than Brady. It trades about -0.03 of its total potential returns per unit of risk. Brady is currently generating about 0.03 per unit of volatility. If you would invest  7,347  in Brady on September 2, 2024 and sell it today you would earn a total of  142.00  from holding Brady or generate 1.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	73.44%
Values	Daily Returns

Guardforce AI Co  vs.  Brady

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 abnormal performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Brady

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brady are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Brady is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Guardforce and Brady

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

The idea behind Guardforce AI Co and Brady 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.