Correlation Between Guardforce and Kaltura

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

Diversification Opportunities for Guardforce and Kaltura

-0.06

Correlation Coefficient

Guardforce  Kaltura

Good diversification

The 3 months correlation between Guardforce and Kaltura is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura 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 Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Guardforce i.e., Guardforce and Kaltura go up and down completely randomly.

Pair Corralation between Guardforce and Kaltura

Assuming the 90 days horizon Guardforce AI Co is expected to under-perform the Kaltura. In addition to that, Guardforce is 2.89 times more volatile than Kaltura. It trades about -0.14 of its total potential returns per unit of risk. Kaltura is currently generating about -0.11 per unit of volatility. If you would invest  258.00  in Kaltura on December 5, 2024 and sell it today you would lose (60.00) from holding Kaltura or give up 23.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.5%
Values	Daily Returns

Guardforce AI Co  vs.  Kaltura

Guardforce AI

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward indicators, Guardforce showed solid returns over the last few months and may actually be approaching a breakup point.

Kaltura

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kaltura has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Guardforce and Kaltura

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

The idea behind Guardforce AI Co and Kaltura 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.