Correlation Between Guardforce and CXApp
Can any of the company-specific risk be diversified away by investing in both Guardforce and CXApp 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 CXApp 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 CXApp Inc, you can compare the effects of market volatilities on Guardforce and CXApp 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 CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and CXApp.
Diversification Opportunities for Guardforce and CXApp
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guardforce and CXApp is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc 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 CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Guardforce i.e., Guardforce and CXApp go up and down completely randomly.
Pair Corralation between Guardforce and CXApp
Given the investment horizon of 90 days Guardforce AI Co is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Guardforce AI Co is 1.97 times less risky than CXApp. The stock trades about -0.03 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,114 in CXApp Inc on August 31, 2024 and sell it today you would lose (947.00) from holding CXApp Inc or give up 85.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. CXApp Inc
Performance |
| Timeline |
| Guardforce AI |
| CXApp Inc |
Guardforce and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and CXApp
The main advantage of trading using opposite Guardforce and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, CXApp 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 CXApp will offset losses from the drop in CXApp's long position.| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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