Correlation Between South Star and Guardforce
Can any of the company-specific risk be diversified away by investing in both South Star 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 South Star and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Star Battery and Guardforce AI Co, you can compare the effects of market volatilities on South Star 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 South Star with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Star and Guardforce.
Diversification Opportunities for South Star and Guardforce
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between South and Guardforce is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding South Star Battery and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and South Star 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 South Star Battery 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 South Star i.e., South Star and Guardforce go up and down completely randomly.
Pair Corralation between South Star and Guardforce
Assuming the 90 days horizon South Star Battery is expected to under-perform the Guardforce. But the otc stock apears to be less risky and, when comparing its historical volatility, South Star Battery is 1.47 times less risky than Guardforce. The otc stock trades about -0.02 of its potential returns per unit of risk. The Guardforce AI Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Guardforce AI Co on September 2, 2024 and sell it today you would earn a total of 0.22 from holding Guardforce AI Co or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
South Star Battery vs. Guardforce AI Co
Performance |
| Timeline |
| South Star Battery |
| Guardforce AI |
South Star and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Star and Guardforce
The main advantage of trading using opposite South Star and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Star 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.| South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Qubec Nickel Corp | South Star vs. Rockridge Resources |
| Guardforce vs. US Critical Metals | Guardforce vs. REDFLEX HOLDINGS LTD | Guardforce vs. Graphite One | Guardforce vs. Patriot Battery Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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