Correlation Between Zedcor and Guardforce
Can any of the company-specific risk be diversified away by investing in both Zedcor 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 Zedcor and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedcor Inc and Guardforce AI Co, you can compare the effects of market volatilities on Zedcor 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 Zedcor with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedcor and Guardforce.
Diversification Opportunities for Zedcor and Guardforce
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zedcor and Guardforce is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Zedcor Inc and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Zedcor 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 Zedcor Inc 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 Zedcor i.e., Zedcor and Guardforce go up and down completely randomly.
Pair Corralation between Zedcor and Guardforce
Assuming the 90 days horizon Zedcor Inc is expected to generate 0.25 times more return on investment than Guardforce. However, Zedcor Inc is 4.02 times less risky than Guardforce. It trades about 0.13 of its potential returns per unit of risk. Guardforce AI Co is currently generating about 0.02 per unit of risk. If you would invest 40.00 in Zedcor Inc on August 28, 2024 and sell it today you would earn a total of 208.00 from holding Zedcor Inc or generate 520.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zedcor Inc vs. Guardforce AI Co
Performance |
| Timeline |
| Zedcor Inc |
| Guardforce AI |
Zedcor and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedcor and Guardforce
The main advantage of trading using opposite Zedcor and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedcor 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.| Zedcor vs. Element Solutions | Zedcor vs. Orion Engineered Carbons | Zedcor vs. Minerals Technologies | Zedcor vs. Ingevity Corp |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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