Correlation Between Guardforce and Lytus Technologies
Can any of the company-specific risk be diversified away by investing in both Guardforce and Lytus Technologies 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 Lytus Technologies 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 Lytus Technologies Holdings, you can compare the effects of market volatilities on Guardforce and Lytus Technologies 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 Lytus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardforce and Lytus Technologies.
Diversification Opportunities for Guardforce and Lytus Technologies
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guardforce and Lytus is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Lytus Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lytus Technologies 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 Lytus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lytus Technologies has no effect on the direction of Guardforce i.e., Guardforce and Lytus Technologies go up and down completely randomly.
Pair Corralation between Guardforce and Lytus Technologies
Assuming the 90 days horizon Guardforce AI Co is expected to generate 0.44 times more return on investment than Lytus Technologies. However, Guardforce AI Co is 2.26 times less risky than Lytus Technologies. It trades about 0.12 of its potential returns per unit of risk. Lytus Technologies Holdings is currently generating about -0.25 per unit of risk. If you would invest 20.00 in Guardforce AI Co on December 5, 2024 and sell it today you would earn a total of 3.00 from holding Guardforce AI Co or generate 15.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guardforce AI Co vs. Lytus Technologies Holdings
Performance |
Timeline |
Guardforce AI |
Lytus Technologies |
Guardforce and Lytus Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guardforce and Lytus Technologies
The main advantage of trading using opposite Guardforce and Lytus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardforce position performs unexpectedly, Lytus Technologies 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 Lytus Technologies will offset losses from the drop in Lytus Technologies' long position.Guardforce vs. Inspira Technologies Oxy | Guardforce vs. American Rebel Holdings | Guardforce vs. TC BioPharm plc | Guardforce vs. bioAffinity Technologies Warrant |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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