Correlation Between Iveda Solutions and Guardforce
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions 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 Iveda Solutions and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions and Guardforce AI Co, you can compare the effects of market volatilities on Iveda Solutions 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 Iveda Solutions with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Guardforce.
Diversification Opportunities for Iveda Solutions and Guardforce
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iveda and Guardforce is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions i.e., Iveda Solutions and Guardforce go up and down completely randomly.
Pair Corralation between Iveda Solutions and Guardforce
Given the investment horizon of 90 days Iveda Solutions is expected to under-perform the Guardforce. But the stock apears to be less risky and, when comparing its historical volatility, Iveda Solutions is 1.78 times less risky than Guardforce. The stock trades about -0.18 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 143.00 in Guardforce AI Co on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Guardforce AI Co or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Iveda Solutions vs. Guardforce AI Co
Performance |
| Timeline |
| Iveda Solutions |
| Guardforce AI |
Iveda Solutions and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iveda Solutions and Guardforce
The main advantage of trading using opposite Iveda Solutions and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions 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.| Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions vs. Guardforce AI Co |
| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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