Correlation Between Guardforce and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both Guardforce and Aurelia Metals 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 Aurelia Metals 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 Aurelia Metals Limited, you can compare the effects of market volatilities on Guardforce and Aurelia Metals 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 Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Aurelia Metals.
Diversification Opportunities for Guardforce and Aurelia Metals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guardforce and Aurelia is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Aurelia Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals 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 Aurelia Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelia Metals has no effect on the direction of Guardforce i.e., Guardforce and Aurelia Metals go up and down completely randomly.
Pair Corralation between Guardforce and Aurelia Metals
Assuming the 90 days horizon Guardforce AI Co is expected to generate 0.4 times more return on investment than Aurelia Metals. However, Guardforce AI Co is 2.47 times less risky than Aurelia Metals. It trades about -0.29 of its potential returns per unit of risk. Aurelia Metals Limited is currently generating about -0.21 per unit of risk. If you would invest 4.77 in Guardforce AI Co on September 12, 2024 and sell it today you would lose (1.26) from holding Guardforce AI Co or give up 26.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guardforce AI Co vs. Aurelia Metals Limited
Performance |
| Timeline |
| Guardforce AI |
| Aurelia Metals |
Guardforce and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Aurelia Metals
The main advantage of trading using opposite Guardforce and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Aurelia Metals 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 Aurelia Metals will offset losses from the drop in Aurelia Metals' long position.| Guardforce vs. Qubec Nickel Corp | Guardforce vs. IGO Limited | Guardforce vs. Focus Graphite | Guardforce vs. Mineral Res |
| Aurelia Metals vs. Qubec Nickel Corp | Aurelia Metals vs. IGO Limited | Aurelia Metals vs. Focus Graphite | Aurelia Metals vs. Mineral Res |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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