Correlation Between Guardforce and South Star
Can any of the company-specific risk be diversified away by investing in both Guardforce and South Star 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 South Star 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 South Star Battery, you can compare the effects of market volatilities on Guardforce and South Star 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 South Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and South Star.
Diversification Opportunities for Guardforce and South Star
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guardforce and South is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and South Star Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Star 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 South Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Star Battery has no effect on the direction of Guardforce i.e., Guardforce and South Star go up and down completely randomly.
Pair Corralation between Guardforce and South Star
Assuming the 90 days horizon Guardforce AI Co is expected to generate 1.47 times more return on investment than South Star. However, Guardforce is 1.47 times more volatile than South Star Battery. It trades about 0.07 of its potential returns per unit of risk. South Star Battery is currently generating about -0.02 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guardforce AI Co vs. South Star Battery
Performance |
| Timeline |
| Guardforce AI |
| South Star Battery |
Guardforce and South Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardforce and South Star
The main advantage of trading using opposite Guardforce and South Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, South Star 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 South Star will offset losses from the drop in South Star's long position.| Guardforce vs. US Critical Metals | Guardforce vs. REDFLEX HOLDINGS LTD | Guardforce vs. Graphite One | Guardforce vs. Patriot Battery Metals |
| South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Qubec Nickel Corp | South Star vs. Rockridge Resources |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |