Correlation Between LogicMark and Guardforce

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

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

Diversification Opportunities for LogicMark and Guardforce

0.82

Correlation Coefficient

LogicMark  Guardforce

Very poor diversification

The 3 months correlation between LogicMark and Guardforce is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding LogicMark and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and LogicMark 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 LogicMark are associated (or correlated) with Guardforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardforce AI has no effect on the direction of LogicMark i.e., LogicMark and Guardforce go up and down completely randomly.

Pair Corralation between LogicMark and Guardforce

Given the investment horizon of 90 days LogicMark is expected to under-perform the Guardforce. In addition to that, LogicMark is 1.1 times more volatile than Guardforce AI Co. It trades about -0.46 of its total potential returns per unit of risk. Guardforce AI Co is currently generating about 0.0 per unit of volatility. If you would invest  143.00  in Guardforce AI Co on December 31, 2024 and sell it today you would lose (40.00) from holding Guardforce AI Co or give up 27.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

LogicMark  vs.  Guardforce AI Co

LogicMark

Risk-Adjusted Performance

Very Weak

Over the last 90 days LogicMark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Guardforce AI

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guardforce AI Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Guardforce is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with LogicMark and Guardforce

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

The idea behind LogicMark and Guardforce AI Co 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.