Correlation Between Guardforce and International Battery
Can any of the company-specific risk be diversified away by investing in both Guardforce and International Battery 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 International Battery 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 International Battery Metals, you can compare the effects of market volatilities on Guardforce and International Battery 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 International Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and International Battery.
Diversification Opportunities for Guardforce and International Battery
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guardforce and International is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and International Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Battery 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 International Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Battery has no effect on the direction of Guardforce i.e., Guardforce and International Battery go up and down completely randomly.
Pair Corralation between Guardforce and International Battery
Assuming the 90 days horizon Guardforce AI Co is expected to generate 0.55 times more return on investment than International Battery. However, Guardforce AI Co is 1.82 times less risky than International Battery. It trades about 0.07 of its potential returns per unit of risk. International Battery Metals is currently generating about -0.14 per unit of risk. If you would invest 3.50 in Guardforce AI Co on September 2, 2024 and sell it today you would earn a total of 0.22 from holding Guardforce AI Co or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. International Battery Metals
Performance |
| Timeline |
| Guardforce AI |
| International Battery |
Guardforce and International Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and International Battery
The main advantage of trading using opposite Guardforce and International Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, International Battery 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 International Battery will offset losses from the drop in International Battery's long position.| Guardforce vs. US Critical Metals | Guardforce vs. REDFLEX HOLDINGS LTD | Guardforce vs. Graphite One | Guardforce vs. Patriot Battery Metals |
| International Battery vs. ATT Inc | International Battery vs. Merck Company | International Battery vs. Walt Disney | International Battery vs. Caterpillar |
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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