Correlation Between Guardforce and Knightscope
Can any of the company-specific risk be diversified away by investing in both Guardforce and Knightscope 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 Knightscope 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 Knightscope, you can compare the effects of market volatilities on Guardforce and Knightscope 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 Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Knightscope.
Diversification Opportunities for Guardforce and Knightscope
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guardforce and Knightscope is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope 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 Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of Guardforce i.e., Guardforce and Knightscope go up and down completely randomly.
Pair Corralation between Guardforce and Knightscope
Given the investment horizon of 90 days Guardforce AI Co is expected to generate 1.5 times more return on investment than Knightscope. However, Guardforce is 1.5 times more volatile than Knightscope. It trades about 0.02 of its potential returns per unit of risk. Knightscope is currently generating about 0.0 per unit of risk. If you would invest 695.00 in Guardforce AI Co on August 27, 2024 and sell it today you would lose (565.00) from holding Guardforce AI Co or give up 81.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Knightscope
Performance |
| Timeline |
| Guardforce AI |
| Knightscope |
Guardforce and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Knightscope
The main advantage of trading using opposite Guardforce and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope's long position.| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
| Knightscope vs. Plexus Corp | Knightscope vs. Jabil Circuit | Knightscope vs. Sanmina | Knightscope vs. Methode Electronics |
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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