Correlation Between Guardforce and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Guardforce and Swvl Holdings 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 Swvl Holdings 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 Swvl Holdings Corp, you can compare the effects of market volatilities on Guardforce and Swvl Holdings 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 Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Swvl Holdings.
Diversification Opportunities for Guardforce and Swvl Holdings
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guardforce and Swvl is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Swvl Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swvl Holdings Corp 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 Swvl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swvl Holdings Corp has no effect on the direction of Guardforce i.e., Guardforce and Swvl Holdings go up and down completely randomly.
Pair Corralation between Guardforce and Swvl Holdings
Assuming the 90 days horizon Guardforce AI Co is expected to generate 2.15 times more return on investment than Swvl Holdings. However, Guardforce is 2.15 times more volatile than Swvl Holdings Corp. It trades about 0.03 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.06 per unit of risk. If you would invest 13.00 in Guardforce AI Co on August 28, 2024 and sell it today you would lose (3.00) from holding Guardforce AI Co or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Guardforce AI Co vs. Swvl Holdings Corp
Performance |
| Timeline |
| Guardforce AI |
| Swvl Holdings Corp |
Guardforce and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Swvl Holdings
The main advantage of trading using opposite Guardforce and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Swvl Holdings 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 Swvl Holdings will offset losses from the drop in Swvl Holdings' long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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