Correlation Between Guardforce and ATWEC Technologies
Can any of the company-specific risk be diversified away by investing in both Guardforce and ATWEC Technologies 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 Guardforce and ATWEC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardforce AI Co and ATWEC Technologies, you can compare the effects of market volatilities on Guardforce and ATWEC Technologies 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 Guardforce with a short position of ATWEC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and ATWEC Technologies.
Diversification Opportunities for Guardforce and ATWEC Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardforce and ATWEC is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and ATWEC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATWEC Technologies and Guardforce 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 Guardforce AI Co are associated (or correlated) with ATWEC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATWEC Technologies has no effect on the direction of Guardforce i.e., Guardforce and ATWEC Technologies go up and down completely randomly.
Pair Corralation between Guardforce and ATWEC Technologies
Given the investment horizon of 90 days Guardforce is expected to generate 4.0 times less return on investment than ATWEC Technologies. But when comparing it to its historical volatility, Guardforce AI Co is 1.43 times less risky than ATWEC Technologies. It trades about 0.09 of its potential returns per unit of risk. ATWEC Technologies is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.09 in ATWEC Technologies on November 3, 2024 and sell it today you would earn a total of 0.10 from holding ATWEC Technologies or generate 111.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guardforce AI Co vs. ATWEC Technologies
Performance |
| Timeline |
| Guardforce AI |
| ATWEC Technologies |
Guardforce and ATWEC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and ATWEC Technologies
The main advantage of trading using opposite Guardforce and ATWEC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, ATWEC Technologies 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 ATWEC Technologies will offset losses from the drop in ATWEC Technologies' long position.| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
| ATWEC Technologies vs. Bridger Aerospace Group | ATWEC Technologies vs. Assa Abloy AB | ATWEC Technologies vs. Ameriguard Security Services | ATWEC Technologies vs. Blue Line Protection |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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