Correlation Between ASSA ABLOY and Guardforce
Can any of the company-specific risk be diversified away by investing in both ASSA ABLOY 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 ASSA ABLOY and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSA ABLOY AB and Guardforce AI Co, you can compare the effects of market volatilities on ASSA ABLOY 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 ASSA ABLOY with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSA ABLOY and Guardforce.
Diversification Opportunities for ASSA ABLOY and Guardforce
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASSA and Guardforce is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ASSA ABLOY AB and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and ASSA ABLOY 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 ASSA ABLOY AB 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 ASSA ABLOY i.e., ASSA ABLOY and Guardforce go up and down completely randomly.
Pair Corralation between ASSA ABLOY and Guardforce
If you would invest 143.00 in Guardforce AI Co on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Guardforce AI Co or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
ASSA ABLOY AB vs. Guardforce AI Co
Performance |
| Timeline |
| ASSA ABLOY AB |
| Guardforce AI |
ASSA ABLOY and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASSA ABLOY and Guardforce
The main advantage of trading using opposite ASSA ABLOY and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSA ABLOY 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.| ASSA ABLOY vs. Bridger Aerospace Group | ASSA ABLOY vs. ATWEC Technologies | ASSA ABLOY vs. Assa Abloy AB | ASSA ABLOY vs. Brinks Company |
| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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