Correlation Between Vopia and Guardforce

Can any of the company-specific risk be diversified away by investing in both Vopia 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 Vopia and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vopia Inc and Guardforce AI Co, you can compare the effects of market volatilities on Vopia 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 Vopia with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vopia and Guardforce.

Diversification Opportunities for Vopia and Guardforce

-0.63

Correlation Coefficient

Vopia  Guardforce

Excellent diversification

The 3 months correlation between Vopia and Guardforce is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Vopia Inc and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Vopia 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 Vopia Inc 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 Vopia i.e., Vopia and Guardforce go up and down completely randomly.

Pair Corralation between Vopia and Guardforce

Given the investment horizon of 90 days Vopia Inc is expected to under-perform the Guardforce. But the pink sheet apears to be less risky and, when comparing its historical volatility, Vopia Inc is 2.33 times less risky than Guardforce. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Guardforce AI Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  171.00  in Guardforce AI Co on October 26, 2024 and sell it today you would earn a total of  17.00  from holding Guardforce AI Co or generate 9.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

Vopia Inc  vs.  Guardforce AI Co

Vopia Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vopia Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vopia reported solid returns over the last few months and may actually be approaching a breakup point.

Guardforce AI

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Guardforce demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vopia and Guardforce

The main advantage of trading using opposite Vopia and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vopia 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.

The idea behind Vopia Inc and Guardforce AI Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.