Correlation Between Guardforce and Brinks
Can any of the company-specific risk be diversified away by investing in both Guardforce and Brinks 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 Brinks 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 Brinks Company, you can compare the effects of market volatilities on Guardforce and Brinks 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 Brinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Brinks.
Diversification Opportunities for Guardforce and Brinks
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guardforce and Brinks is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Brinks Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks Company 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 Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks Company has no effect on the direction of Guardforce i.e., Guardforce and Brinks go up and down completely randomly.
Pair Corralation between Guardforce and Brinks
Assuming the 90 days horizon Guardforce AI Co is expected to generate 11.85 times more return on investment than Brinks. However, Guardforce is 11.85 times more volatile than Brinks Company. It trades about -0.01 of its potential returns per unit of risk. Brinks Company is currently generating about -0.18 per unit of risk. If you would invest 11.00 in Guardforce AI Co on August 31, 2024 and sell it today you would lose (4.00) from holding Guardforce AI Co or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Brinks Company
Performance |
| Timeline |
| Guardforce AI |
| Brinks Company |
Guardforce and Brinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Brinks
The main advantage of trading using opposite Guardforce and Brinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Brinks 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 Brinks will offset losses from the drop in Brinks' long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
| Brinks vs. MSA Safety | Brinks vs. Resideo Technologies | Brinks vs. Mistras Group | Brinks vs. NL Industries |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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