Correlation Between Knightscope and Guardforce
Can any of the company-specific risk be diversified away by investing in both Knightscope 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 Knightscope and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Guardforce AI Co, you can compare the effects of market volatilities on Knightscope 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 Knightscope with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Guardforce.
Diversification Opportunities for Knightscope and Guardforce
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Knightscope and Guardforce is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Knightscope 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 Knightscope 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 Knightscope i.e., Knightscope and Guardforce go up and down completely randomly.
Pair Corralation between Knightscope and Guardforce
Given the investment horizon of 90 days Knightscope is expected to under-perform the Guardforce. But the stock apears to be less risky and, when comparing its historical volatility, Knightscope is 1.5 times less risky than Guardforce. The stock trades about 0.0 of its potential returns per unit of risk. The Guardforce AI Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 695.00 in Guardforce AI Co on August 27, 2024 and sell it today you would lose (565.00) from holding Guardforce AI Co or give up 81.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knightscope vs. Guardforce AI Co
Performance |
| Timeline |
| Knightscope |
| Guardforce AI |
Knightscope and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Guardforce
The main advantage of trading using opposite Knightscope and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope 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.| Knightscope vs. Plexus Corp | Knightscope vs. Jabil Circuit | Knightscope vs. Sanmina | Knightscope vs. Methode Electronics |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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