Correlation Between Guardforce and VERB TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Guardforce and VERB TECHNOLOGY 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 VERB TECHNOLOGY 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 VERB TECHNOLOGY PANY, you can compare the effects of market volatilities on Guardforce and VERB TECHNOLOGY 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 VERB TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and VERB TECHNOLOGY.
Diversification Opportunities for Guardforce and VERB TECHNOLOGY
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardforce and VERB is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and VERB TECHNOLOGY PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERB TECHNOLOGY PANY 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 VERB TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERB TECHNOLOGY PANY has no effect on the direction of Guardforce i.e., Guardforce and VERB TECHNOLOGY go up and down completely randomly.
Pair Corralation between Guardforce and VERB TECHNOLOGY
Assuming the 90 days horizon Guardforce AI Co is expected to generate 2.88 times more return on investment than VERB TECHNOLOGY. However, Guardforce is 2.88 times more volatile than VERB TECHNOLOGY PANY. It trades about 0.16 of its potential returns per unit of risk. VERB TECHNOLOGY PANY is currently generating about 0.04 per unit of risk. If you would invest 11.00 in Guardforce AI Co on October 7, 2024 and sell it today you would earn a total of 23.00 from holding Guardforce AI Co or generate 209.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Guardforce AI Co vs. VERB TECHNOLOGY PANY
Performance |
| Timeline |
| Guardforce AI |
| VERB TECHNOLOGY PANY |
Guardforce and VERB TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and VERB TECHNOLOGY
The main advantage of trading using opposite Guardforce and VERB TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, VERB TECHNOLOGY 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 VERB TECHNOLOGY will offset losses from the drop in VERB TECHNOLOGY's long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
| VERB TECHNOLOGY vs. Trust Stamp | VERB TECHNOLOGY vs. Freight Technologies | VERB TECHNOLOGY vs. Versus Systems | VERB TECHNOLOGY vs. Auddia Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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