Correlation Between Champion Bear and Guardforce
Can any of the company-specific risk be diversified away by investing in both Champion Bear 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 Champion Bear and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Bear Resources and Guardforce AI Co, you can compare the effects of market volatilities on Champion Bear 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 Champion Bear with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Bear and Guardforce.
Diversification Opportunities for Champion Bear and Guardforce
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Champion and Guardforce is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Champion Bear Resources and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Champion Bear 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 Champion Bear Resources 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 Champion Bear i.e., Champion Bear and Guardforce go up and down completely randomly.
Pair Corralation between Champion Bear and Guardforce
If you would invest 4.00 in Champion Bear Resources on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Champion Bear Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champion Bear Resources vs. Guardforce AI Co
Performance |
| Timeline |
| Champion Bear Resources |
| Guardforce AI |
Champion Bear and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Bear and Guardforce
The main advantage of trading using opposite Champion Bear and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Bear 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.| Champion Bear vs. Qubec Nickel Corp | Champion Bear vs. IGO Limited | Champion Bear vs. Focus Graphite | Champion Bear vs. Mineral Res |
| Guardforce vs. Qubec Nickel Corp | Guardforce vs. IGO Limited | Guardforce vs. Focus Graphite | Guardforce vs. Mineral Res |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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