Correlation Between Guardforce and Senstar Technologies
Can any of the company-specific risk be diversified away by investing in both Guardforce and Senstar Technologies 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 Senstar Technologies 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 Senstar Technologies, you can compare the effects of market volatilities on Guardforce and Senstar Technologies 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 Senstar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Senstar Technologies.
Diversification Opportunities for Guardforce and Senstar Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardforce and Senstar is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Senstar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senstar Technologies 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 Senstar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senstar Technologies has no effect on the direction of Guardforce i.e., Guardforce and Senstar Technologies go up and down completely randomly.
Pair Corralation between Guardforce and Senstar Technologies
Assuming the 90 days horizon Guardforce AI Co is expected to generate 46.2 times more return on investment than Senstar Technologies. However, Guardforce is 46.2 times more volatile than Senstar Technologies. It trades about 0.19 of its potential returns per unit of risk. Senstar Technologies is currently generating about 0.16 per unit of risk. If you would invest 20.00 in Guardforce AI Co on September 1, 2024 and sell it today you would lose (14.99) from holding Guardforce AI Co or give up 74.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.84% |
| Values | Daily Returns |
Guardforce AI Co vs. Senstar Technologies
Performance |
| Timeline |
| Guardforce AI |
| Senstar Technologies |
Guardforce and Senstar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Senstar Technologies
The main advantage of trading using opposite Guardforce and Senstar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Senstar Technologies 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 Senstar Technologies will offset losses from the drop in Senstar Technologies' long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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