Correlation Between Guardforce and IWallet

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

Diversification Opportunities for Guardforce and IWallet

0.55

Correlation Coefficient

Guardforce  IWallet

Very weak diversification

The 3 months correlation between Guardforce and IWallet is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guardforce AI Co and iWallet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iWallet 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 IWallet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iWallet has no effect on the direction of Guardforce i.e., Guardforce and IWallet go up and down completely randomly.

Pair Corralation between Guardforce and IWallet

Assuming the 90 days horizon Guardforce AI Co is expected to generate 2.72 times more return on investment than IWallet. However, Guardforce is 2.72 times more volatile than iWallet. It trades about 0.06 of its potential returns per unit of risk. iWallet is currently generating about -0.07 per unit of risk. If you would invest  4.53  in Guardforce AI Co on September 3, 2025 and sell it today you would lose (0.53) from holding Guardforce AI Co or give up 11.7% of portfolio value over 90 days.

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

Guardforce AI Co  vs.  iWallet

Guardforce AI

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Guardforce AI Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Guardforce reported solid returns over the last few months and may actually be approaching a breakup point.

iWallet

Risk-Adjusted Performance

Weakest

Over the last 90 days iWallet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Guardforce and IWallet

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

The idea behind Guardforce AI Co and iWallet 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.