Correlation Between Brinker International and Guardforce
Can any of the company-specific risk be diversified away by investing in both Brinker International 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 Brinker International and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinker International and Guardforce AI Co, you can compare the effects of market volatilities on Brinker International 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 Brinker International with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Guardforce.
Diversification Opportunities for Brinker International and Guardforce
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brinker and Guardforce is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Brinker International 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 Brinker International 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 Brinker International i.e., Brinker International and Guardforce go up and down completely randomly.
Pair Corralation between Brinker International and Guardforce
Considering the 90-day investment horizon Brinker International is expected to generate 0.13 times more return on investment than Guardforce. However, Brinker International is 7.6 times less risky than Guardforce. It trades about 0.52 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 9,701 in Brinker International on August 30, 2024 and sell it today you would earn a total of 3,368 from holding Brinker International or generate 34.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brinker International vs. Guardforce AI Co
Performance |
| Timeline |
| Brinker International |
| Guardforce AI |
Brinker International and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brinker International and Guardforce
The main advantage of trading using opposite Brinker International and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International 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.| Brinker International vs. Jack In The | Brinker International vs. Potbelly Co | Brinker International vs. Rave Restaurant Group |
| Guardforce vs. Merck Company | Guardforce vs. Pharvaris BV | Guardforce vs. Brinker International | Guardforce vs. Alcoa Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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