Correlation Between Guardforce and Savannah Resources
Can any of the company-specific risk be diversified away by investing in both Guardforce and Savannah Resources 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 Savannah Resources 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 Savannah Resources Plc, you can compare the effects of market volatilities on Guardforce and Savannah Resources 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 Savannah Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Savannah Resources.
Diversification Opportunities for Guardforce and Savannah Resources
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guardforce and Savannah is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Savannah Resources Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savannah Resources Plc 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 Savannah Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savannah Resources Plc has no effect on the direction of Guardforce i.e., Guardforce and Savannah Resources go up and down completely randomly.
Pair Corralation between Guardforce and Savannah Resources
Assuming the 90 days horizon Guardforce AI Co is expected to generate 2.03 times more return on investment than Savannah Resources. However, Guardforce is 2.03 times more volatile than Savannah Resources Plc. It trades about 0.09 of its potential returns per unit of risk. Savannah Resources Plc is currently generating about 0.04 per unit of risk. If you would invest 2.53 in Guardforce AI Co on September 3, 2024 and sell it today you would earn a total of 1.19 from holding Guardforce AI Co or generate 47.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardforce AI Co vs. Savannah Resources Plc
Performance |
| Timeline |
| Guardforce AI |
| Savannah Resources Plc |
Guardforce and Savannah Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and Savannah Resources
The main advantage of trading using opposite Guardforce and Savannah Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Savannah Resources 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 Savannah Resources will offset losses from the drop in Savannah Resources' long position.| Guardforce vs. Qubec Nickel Corp | Guardforce vs. IGO Limited | Guardforce vs. Avarone Metals | Guardforce vs. Adriatic Metals PLC |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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