Correlation Between Talga Group and Guardforce
Can any of the company-specific risk be diversified away by investing in both Talga Group 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 Talga Group and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talga Group and Guardforce AI Co, you can compare the effects of market volatilities on Talga Group 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 Talga Group with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talga Group and Guardforce.
Diversification Opportunities for Talga Group and Guardforce
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Talga and Guardforce is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Talga 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 Talga Group 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 Talga 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 Talga Group i.e., Talga Group and Guardforce go up and down completely randomly.
Pair Corralation between Talga Group and Guardforce
Assuming the 90 days horizon Talga Group is expected to under-perform the Guardforce. But the pink sheet apears to be less risky and, when comparing its historical volatility, Talga Group is 1.05 times less risky than Guardforce. The pink sheet trades about -0.09 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talga Group vs. Guardforce AI Co
Performance |
| Timeline |
| Talga Group |
| Guardforce AI |
Talga Group and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talga Group and Guardforce
The main advantage of trading using opposite Talga Group and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talga Group 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.| Talga Group vs. Golden Goliath Resources | Talga Group vs. Fireweed Zinc | Talga Group vs. Monitor Ventures | Talga Group vs. Global Energy Metals |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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