Correlation Between Enfusion and Guardforce
Can any of the company-specific risk be diversified away by investing in both Enfusion 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 Enfusion and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Guardforce AI Co, you can compare the effects of market volatilities on Enfusion 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 Enfusion with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Guardforce.
Diversification Opportunities for Enfusion and Guardforce
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enfusion and Guardforce is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Enfusion 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 Enfusion 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 Enfusion i.e., Enfusion and Guardforce go up and down completely randomly.
Pair Corralation between Enfusion and Guardforce
Given the investment horizon of 90 days Enfusion is expected to generate 1.38 times less return on investment than Guardforce. But when comparing it to its historical volatility, Enfusion is 2.71 times less risky than Guardforce. It trades about 0.31 of its potential returns per unit of risk. Guardforce AI Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Guardforce AI Co on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Guardforce AI Co or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enfusion vs. Guardforce AI Co
Performance |
| Timeline |
| Enfusion |
| Guardforce AI |
Enfusion and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Guardforce
The main advantage of trading using opposite Enfusion and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion 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.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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