Correlation Between Guardforce and Daqo New
Can any of the company-specific risk be diversified away by investing in both Guardforce and Daqo New 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 Daqo New 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 Daqo New Energy, you can compare the effects of market volatilities on Guardforce and Daqo New 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 Daqo New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Daqo New.
Diversification Opportunities for Guardforce and Daqo New
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guardforce and Daqo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Daqo New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daqo New Energy 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 Daqo New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daqo New Energy has no effect on the direction of Guardforce i.e., Guardforce and Daqo New go up and down completely randomly.
Pair Corralation between Guardforce and Daqo New
Given the investment horizon of 90 days Guardforce AI Co is expected to under-perform the Daqo New. In addition to that, Guardforce is 1.22 times more volatile than Daqo New Energy. It trades about -0.25 of its total potential returns per unit of risk. Daqo New Energy is currently generating about 0.19 per unit of volatility. If you would invest 1,762 in Daqo New Energy on November 27, 2024 and sell it today you would earn a total of 271.00 from holding Daqo New Energy or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Daqo New Energy
Performance |
| Timeline |
| Guardforce AI |
| Daqo New Energy |
Guardforce and Daqo New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Daqo New
The main advantage of trading using opposite Guardforce and Daqo New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Daqo New 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 Daqo New will offset losses from the drop in Daqo New's long position.| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
| Daqo New vs. Axcelis Technologies | Daqo New vs. Kulicke and Soffa | Daqo New vs. Ultra Clean Holdings | Daqo New vs. Cohu Inc |
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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