Correlation Between Guardforce and Toppoint Holdings

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

Diversification Opportunities for Guardforce and Toppoint Holdings

0.74

Correlation Coefficient

Guardforce  Toppoint Holdings

Poor diversification

The 3 months correlation between Guardforce and Toppoint is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Toppoint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toppoint Holdings 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 Toppoint Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toppoint Holdings has no effect on the direction of Guardforce i.e., Guardforce and Toppoint Holdings go up and down completely randomly.

Pair Corralation between Guardforce and Toppoint Holdings

Given the investment horizon of 90 days Guardforce AI Co is expected to generate 0.48 times more return on investment than Toppoint Holdings. However, Guardforce AI Co is 2.09 times less risky than Toppoint Holdings. It trades about -0.07 of its potential returns per unit of risk. Toppoint Holdings is currently generating about -0.05 per unit of risk. If you would invest  115.00  in Guardforce AI Co on September 15, 2025 and sell it today you would lose (31.00) from holding Guardforce AI Co or give up 26.96% of portfolio value over 90 days.

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

Guardforce AI Co  vs.  Toppoint Holdings

Guardforce AI

Risk-Adjusted Performance

Weakest

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 January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Toppoint Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Toppoint Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Guardforce and Toppoint Holdings

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

The idea behind Guardforce AI Co and Toppoint Holdings 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.