Correlation Between Guardforce and Plymouth Rock

Can any of the company-specific risk be diversified away by investing in both Guardforce and Plymouth Rock 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 Plymouth Rock 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 Plymouth Rock Technologies, you can compare the effects of market volatilities on Guardforce and Plymouth Rock 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 Plymouth Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Plymouth Rock.

Diversification Opportunities for Guardforce and Plymouth Rock

-0.45

Correlation Coefficient

Guardforce  Plymouth Rock

Very good diversification

The 3 months correlation between Guardforce and Plymouth is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Plymouth Rock Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plymouth Rock Techno 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 Plymouth Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plymouth Rock Techno has no effect on the direction of Guardforce i.e., Guardforce and Plymouth Rock go up and down completely randomly.

Pair Corralation between Guardforce and Plymouth Rock

If you would invest  119.00  in Guardforce AI Co on October 2, 2024 and sell it today you would earn a total of  34.00  from holding Guardforce AI Co or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Guardforce AI Co  vs.  Plymouth Rock Technologies

Guardforce AI

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 6 (%) 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.

Plymouth Rock Techno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plymouth Rock Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Plymouth Rock is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Guardforce and Plymouth Rock

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

The idea behind Guardforce AI Co and Plymouth Rock Technologies 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.

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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.