Correlation Between Guardforce and Zoom Video
Can any of the company-specific risk be diversified away by investing in both Guardforce and Zoom Video 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 Zoom Video 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 Zoom Video Communications, you can compare the effects of market volatilities on Guardforce and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Zoom Video.
Diversification Opportunities for Guardforce and Zoom Video
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guardforce and Zoom is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Guardforce i.e., Guardforce and Zoom Video go up and down completely randomly.
Pair Corralation between Guardforce and Zoom Video
Assuming the 90 days horizon Guardforce AI Co is expected to generate 19.63 times more return on investment than Zoom Video. However, Guardforce is 19.63 times more volatile than Zoom Video Communications. It trades about 0.16 of its potential returns per unit of risk. Zoom Video Communications is currently generating about 0.05 per unit of risk. If you would invest 20.00 in Guardforce AI Co on September 14, 2024 and sell it today you would earn a total of 9.00 from holding Guardforce AI Co or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Zoom Video Communications
Performance |
| Timeline |
| Guardforce AI |
| Zoom Video Communications |
Guardforce and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Zoom Video
The main advantage of trading using opposite Guardforce and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
| Zoom Video vs. Dave Warrants | Zoom Video vs. Swvl Holdings Corp | Zoom Video vs. Guardforce AI Co | Zoom Video 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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