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
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASSA and Guardforce is 0.37. 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
Assuming the 90 days horizon ASSA ABLOY AB is expected to generate 0.34 times more return on investment than Guardforce. However, ASSA ABLOY AB is 2.95 times less risky than Guardforce. It trades about 0.08 of its potential returns per unit of risk. Guardforce AI Co is currently generating about -0.04 per unit of risk. If you would invest 2,357 in ASSA ABLOY AB on September 2, 2024 and sell it today you would earn a total of 729.00 from holding ASSA ABLOY AB or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.26% |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |