Correlation Between Guardforce and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both Guardforce and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions, you can compare the effects of market volatilities on Guardforce and Iveda Solutions 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 Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Iveda Solutions.
Diversification Opportunities for Guardforce and Iveda Solutions
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guardforce and Iveda is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions 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 Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of Guardforce i.e., Guardforce and Iveda Solutions go up and down completely randomly.
Pair Corralation between Guardforce and Iveda Solutions
Given the investment horizon of 90 days Guardforce AI Co is expected to under-perform the Iveda Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Guardforce AI Co is 2.1 times less risky than Iveda Solutions. The stock trades about -0.16 of its potential returns per unit of risk. The Iveda Solutions is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 552.00 in Iveda Solutions on August 24, 2024 and sell it today you would lose (323.00) from holding Iveda Solutions or give up 58.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Iveda Solutions
Performance |
| Timeline |
| Guardforce AI |
| Iveda Solutions |
Guardforce and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Iveda Solutions
The main advantage of trading using opposite Guardforce and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
| Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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