Correlation Between Guardforce and Thruvision Group

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

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

Diversification Opportunities for Guardforce and Thruvision Group

0.03

Correlation Coefficient

Guardforce  Thruvision Group

Significant diversification

The 3 months correlation between Guardforce and Thruvision is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Thruvision Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thruvision Group plc and Guardforce 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 Guardforce AI Co are associated (or correlated) with Thruvision Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thruvision Group plc has no effect on the direction of Guardforce i.e., Guardforce and Thruvision Group go up and down completely randomly.

Pair Corralation between Guardforce and Thruvision Group

If you would invest  114.00  in Guardforce AI Co on September 12, 2024 and sell it today you would earn a total of  39.00  from holding Guardforce AI Co or generate 34.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Guardforce AI Co  vs.  Thruvision Group plc

Guardforce AI

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Guardforce demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Thruvision Group plc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Thruvision Group plc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Thruvision Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Guardforce and Thruvision Group

The main advantage of trading using opposite Guardforce and Thruvision Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Thruvision Group 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 Thruvision Group will offset losses from the drop in Thruvision Group's long position.

The idea behind Guardforce AI Co and Thruvision Group plc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.