Correlation Between Mistras and Guardforce
Can any of the company-specific risk be diversified away by investing in both Mistras 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 Mistras and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Guardforce AI Co, you can compare the effects of market volatilities on Mistras 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 Mistras with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Guardforce.
Diversification Opportunities for Mistras and Guardforce
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mistras and Guardforce is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Mistras 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 Mistras Group 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 Mistras i.e., Mistras and Guardforce go up and down completely randomly.
Pair Corralation between Mistras and Guardforce
Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Guardforce. But the stock apears to be less risky and, when comparing its historical volatility, Mistras Group is 3.59 times less risky than Guardforce. The stock trades about -0.11 of its potential returns per unit of risk. The Guardforce AI Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Guardforce AI Co on August 31, 2024 and sell it today you would lose (4.00) from holding Guardforce AI Co or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. Guardforce AI Co
Performance |
| Timeline |
| Mistras Group |
| Guardforce AI |
Mistras and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Guardforce
The main advantage of trading using opposite Mistras and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras 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.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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