Correlation Between SSC Security and Guardforce
Can any of the company-specific risk be diversified away by investing in both SSC Security 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 SSC Security and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSC Security Services and Guardforce AI Co, you can compare the effects of market volatilities on SSC Security 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 SSC Security with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Security and Guardforce.
Diversification Opportunities for SSC Security and Guardforce
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SSC and Guardforce is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SSC Security Services and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and SSC Security 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 SSC Security Services 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 SSC Security i.e., SSC Security and Guardforce go up and down completely randomly.
Pair Corralation between SSC Security and Guardforce
Assuming the 90 days horizon SSC Security Services is expected to generate 1.53 times more return on investment than Guardforce. However, SSC Security is 1.53 times more volatile than Guardforce AI Co. It trades about 0.03 of its potential returns per unit of risk. Guardforce AI Co is currently generating about -0.12 per unit of risk. If you would invest 191.00 in SSC Security Services on August 28, 2024 and sell it today you would earn a total of 3.00 from holding SSC Security Services or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSC Security Services vs. Guardforce AI Co
Performance |
| Timeline |
| SSC Security Services |
| Guardforce AI |
SSC Security and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSC Security and Guardforce
The main advantage of trading using opposite SSC Security and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Security 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.| SSC Security vs. YourWay Cannabis Brands | SSC Security vs. China Finance Online | SSC Security vs. 1911 Gold Corp | SSC Security vs. LeanLife Health |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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