Correlation Between Guardforce and LogicMark

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

Diversification Opportunities for Guardforce and LogicMark

0.88

Correlation Coefficient

Guardforce  LogicMark

Very poor diversification

The 3 months correlation between Guardforce and LogicMark is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark 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 LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of Guardforce i.e., Guardforce and LogicMark go up and down completely randomly.

Pair Corralation between Guardforce and LogicMark

Given the investment horizon of 90 days Guardforce AI Co is expected to generate 0.33 times more return on investment than LogicMark. However, Guardforce AI Co is 3.04 times less risky than LogicMark. It trades about -0.08 of its potential returns per unit of risk. LogicMark is currently generating about -0.32 per unit of risk. If you would invest  145.00  in Guardforce AI Co on February 2, 2025 and sell it today you would lose (43.00) from holding Guardforce AI Co or give up 29.66% of portfolio value over 90 days.

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

Guardforce AI Co  vs.  LogicMark

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 weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 June 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Guardforce and LogicMark

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

The idea behind Guardforce AI Co and LogicMark 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.