Correlation Between Guardforce and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Guardforce and NETGEAR 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 NETGEAR 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 NETGEAR, you can compare the effects of market volatilities on Guardforce and NETGEAR 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 NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and NETGEAR.
Diversification Opportunities for Guardforce and NETGEAR
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guardforce and NETGEAR is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR 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 NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Guardforce i.e., Guardforce and NETGEAR go up and down completely randomly.
Pair Corralation between Guardforce and NETGEAR
Given the investment horizon of 90 days Guardforce AI Co is expected to under-perform the NETGEAR. In addition to that, Guardforce is 2.01 times more volatile than NETGEAR. It trades about -0.28 of its total potential returns per unit of risk. NETGEAR is currently generating about -0.01 per unit of volatility. If you would invest 2,582 in NETGEAR on November 28, 2024 and sell it today you would lose (37.00) from holding NETGEAR or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. NETGEAR
Performance |
| Timeline |
| Guardforce AI |
| NETGEAR |
Guardforce and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and NETGEAR
The main advantage of trading using opposite Guardforce and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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