Correlation Between Guardforce and Workday

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

Diversification Opportunities for Guardforce and Workday

0.44

Correlation Coefficient

Guardforce  Workday

Very weak diversification

The 3 months correlation between Guardforce and Workday is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday 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 Workday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workday has no effect on the direction of Guardforce i.e., Guardforce and Workday go up and down completely randomly.

Pair Corralation between Guardforce and Workday

Assuming the 90 days horizon Guardforce AI Co is expected to generate 49.94 times more return on investment than Workday. However, Guardforce is 49.94 times more volatile than Workday. It trades about 0.12 of its potential returns per unit of risk. Workday is currently generating about 0.06 per unit of risk. If you would invest  2.00  in Guardforce AI Co on September 20, 2024 and sell it today you would earn a total of  24.36  from holding Guardforce AI Co or generate 1218.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	84.27%
Values	Daily Returns

Guardforce AI Co  vs.  Workday

Guardforce AI

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 10 (%) 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.

Workday

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Workday are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Workday may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Guardforce and Workday

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

The idea behind Guardforce AI Co and Workday 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.