Correlation Between Guardforce and Vopia

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

Diversification Opportunities for Guardforce and Vopia

0.58

Correlation Coefficient

Guardforce  Vopia

Very weak diversification

The 3 months correlation between Guardforce and Vopia is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Vopia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vopia Inc 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 Vopia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vopia Inc has no effect on the direction of Guardforce i.e., Guardforce and Vopia go up and down completely randomly.

Pair Corralation between Guardforce and Vopia

Given the investment horizon of 90 days Guardforce is expected to generate 13.26 times less return on investment than Vopia. But when comparing it to its historical volatility, Guardforce AI Co is 6.08 times less risky than Vopia. It trades about 0.08 of its potential returns per unit of risk. Vopia Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Vopia Inc on May 1, 2025 and sell it today you would earn a total of  0.02  from holding Vopia Inc or generate 200.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Guardforce AI Co  vs.  Vopia Inc

Guardforce AI

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Guardforce demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Vopia Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vopia Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Vopia reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Guardforce and Vopia

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

The idea behind Guardforce AI Co and Vopia Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.