Correlation Between Guardforce and Capgemini

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

Diversification Opportunities for Guardforce and Capgemini

-0.05

Correlation Coefficient

Guardforce  Capgemini

Good diversification

The 3 months correlation between Guardforce and Capgemini is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of Guardforce i.e., Guardforce and Capgemini go up and down completely randomly.

Pair Corralation between Guardforce and Capgemini

Assuming the 90 days horizon Guardforce AI Co is expected to generate 3.79 times more return on investment than Capgemini. However, Guardforce is 3.79 times more volatile than Capgemini SE. It trades about 0.04 of its potential returns per unit of risk. Capgemini SE is currently generating about -0.03 per unit of risk. If you would invest  4.20  in Guardforce AI Co on July 21, 2025 and sell it today you would lose (0.30) from holding Guardforce AI Co or give up 7.14% of portfolio value over 90 days.

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

Guardforce AI Co  vs.  Capgemini SE

Guardforce AI

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Guardforce reported solid returns over the last few months and may actually be approaching a breakup point.

Capgemini SE

Risk-Adjusted Performance

Weakest

Over the last 90 days Capgemini SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Capgemini is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Guardforce and Capgemini

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

The idea behind Guardforce AI Co and Capgemini SE 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.