Correlation Between Troika Media and Guardforce

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

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

Diversification Opportunities for Troika Media and Guardforce

0.0

Correlation Coefficient

Troika Media  Guardforce

Pay attention - limited upside

The 3 months correlation between Troika and Guardforce is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Troika Media Group and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and Troika Media 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 Troika Media Group 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 Troika Media i.e., Troika Media and Guardforce go up and down completely randomly.

Pair Corralation between Troika Media and Guardforce

If you would invest  17.00  in Guardforce AI Co on December 1, 2024 and sell it today you would earn a total of  8.00  from holding Guardforce AI Co or generate 47.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Troika Media Group  vs.  Guardforce AI Co

Troika Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Troika Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Troika Media is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 8 (%) 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.

Pair Trading with Troika Media and Guardforce

The main advantage of trading using opposite Troika Media and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Troika Media 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 Troika Media Group 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.