Correlation Between Guardforce and Guidewire Software
Can any of the company-specific risk be diversified away by investing in both Guardforce and Guidewire Software 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 Guidewire Software 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 Guidewire Software, you can compare the effects of market volatilities on Guardforce and Guidewire Software 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 Guidewire Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Guidewire Software.
Diversification Opportunities for Guardforce and Guidewire Software
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardforce and Guidewire is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Guidewire Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidewire Software 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 Guidewire Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidewire Software has no effect on the direction of Guardforce i.e., Guardforce and Guidewire Software go up and down completely randomly.
Pair Corralation between Guardforce and Guidewire Software
Assuming the 90 days horizon Guardforce AI Co is expected to generate 16.92 times more return on investment than Guidewire Software. However, Guardforce is 16.92 times more volatile than Guidewire Software. It trades about 0.19 of its potential returns per unit of risk. Guidewire Software is currently generating about -0.15 per unit of risk. If you would invest 12.00 in Guardforce AI Co on September 19, 2024 and sell it today you would earn a total of 13.00 from holding Guardforce AI Co or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Guidewire Software
Performance |
| Timeline |
| Guardforce AI |
| Guidewire Software |
Guardforce and Guidewire Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Guidewire Software
The main advantage of trading using opposite Guardforce and Guidewire Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Guidewire Software 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 Guidewire Software will offset losses from the drop in Guidewire Software's long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
| Guidewire Software vs. Swvl Holdings Corp | Guidewire Software vs. Guardforce AI Co | Guidewire Software vs. Thayer Ventures Acquisition |
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 CEOs Directory module to screen CEOs from public companies around the world.
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