Correlation Between Guardforce and MSA Safety
Can any of the company-specific risk be diversified away by investing in both Guardforce and MSA Safety 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 MSA Safety 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 MSA Safety, you can compare the effects of market volatilities on Guardforce and MSA Safety 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 MSA Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and MSA Safety.
Diversification Opportunities for Guardforce and MSA Safety
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guardforce and MSA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and MSA Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSA Safety 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 MSA Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSA Safety has no effect on the direction of Guardforce i.e., Guardforce and MSA Safety go up and down completely randomly.
Pair Corralation between Guardforce and MSA Safety
Given the investment horizon of 90 days Guardforce AI Co is expected to generate 3.79 times more return on investment than MSA Safety. However, Guardforce is 3.79 times more volatile than MSA Safety. It trades about 0.14 of its potential returns per unit of risk. MSA Safety is currently generating about 0.2 per unit of risk. If you would invest 112.00 in Guardforce AI Co on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Guardforce AI Co or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. MSA Safety
Performance |
| Timeline |
| Guardforce AI |
| MSA Safety |
Guardforce and MSA Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and MSA Safety
The main advantage of trading using opposite Guardforce and MSA Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, MSA Safety 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 MSA Safety will offset losses from the drop in MSA Safety's long position.| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
| MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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