Correlation Between International Battery and Guardforce
Can any of the company-specific risk be diversified away by investing in both International Battery and Guardforce 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 International Battery and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Battery Metals and Guardforce AI Co, you can compare the effects of market volatilities on International Battery and Guardforce 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 International Battery with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Battery and Guardforce.
Diversification Opportunities for International Battery and Guardforce
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Guardforce is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding International Battery Metals and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and International Battery 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 International Battery Metals are associated (or correlated) with Guardforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardforce AI has no effect on the direction of International Battery i.e., International Battery and Guardforce go up and down completely randomly.
Pair Corralation between International Battery and Guardforce
Assuming the 90 days horizon International Battery Metals is expected to under-perform the Guardforce. But the pink sheet apears to be less risky and, when comparing its historical volatility, International Battery Metals is 1.93 times less risky than Guardforce. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Guardforce AI Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Battery Metals vs. Guardforce AI Co
Performance |
| Timeline |
| International Battery |
| Guardforce AI |
International Battery and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Battery and Guardforce
The main advantage of trading using opposite International Battery and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Battery position performs unexpectedly, Guardforce 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 Guardforce will offset losses from the drop in Guardforce's long position.| International Battery vs. Savannah Resources Plc | International Battery vs. Tartisan Nickel Corp | International Battery vs. Critical Elements | International Battery vs. Lithium Energi Exploration |
| Guardforce vs. Qubec Nickel Corp | Guardforce vs. IGO Limited | Guardforce vs. Avarone Metals | Guardforce vs. Adriatic Metals PLC |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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