Correlation Between TC BioPharm and Guardforce
Can any of the company-specific risk be diversified away by investing in both TC BioPharm 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 TC BioPharm and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TC BioPharm plc and Guardforce AI Co, you can compare the effects of market volatilities on TC BioPharm 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 TC BioPharm with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of TC BioPharm and Guardforce.
Diversification Opportunities for TC BioPharm and Guardforce
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TCBPW and Guardforce is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TC BioPharm plc and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and TC BioPharm 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 TC BioPharm plc 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 TC BioPharm i.e., TC BioPharm and Guardforce go up and down completely randomly.
Pair Corralation between TC BioPharm and Guardforce
Assuming the 90 days horizon TC BioPharm plc is expected to generate 1.57 times more return on investment than Guardforce. However, TC BioPharm is 1.57 times more volatile than Guardforce AI Co. It trades about 0.09 of its potential returns per unit of risk. Guardforce AI Co is currently generating about -0.06 per unit of risk. If you would invest 1.91 in TC BioPharm plc on August 27, 2024 and sell it today you would lose (0.31) from holding TC BioPharm plc or give up 16.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TC BioPharm plc vs. Guardforce AI Co
Performance |
| Timeline |
| TC BioPharm plc |
| Guardforce AI |
TC BioPharm and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TC BioPharm and Guardforce
The main advantage of trading using opposite TC BioPharm and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC BioPharm 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.| TC BioPharm vs. bioAffinity Technologies Warrant | TC BioPharm vs. American Rebel Holdings | TC BioPharm vs. Alvotech Warrant | TC BioPharm vs. Inspira Technologies Oxy |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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