Correlation Between JD Sports and Guardforce

Can any of the company-specific risk be diversified away by investing in both JD Sports and Guardforce 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 JD Sports and Guardforce into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JD Sports Fashion and Guardforce AI Co, you can compare the effects of market volatilities on JD Sports and Guardforce 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 JD Sports with a short position of Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Guardforce.

Diversification Opportunities for JD Sports and Guardforce

0.47

Correlation Coefficient

JD Sports  Guardforce

Very weak diversification

The 3 months correlation between JDSPY and Guardforce is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI and JD Sports 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 JD Sports Fashion are associated (or correlated) with Guardforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardforce AI has no effect on the direction of JD Sports i.e., JD Sports and Guardforce go up and down completely randomly.

Pair Corralation between JD Sports and Guardforce

Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the Guardforce. But the pink sheet apears to be less risky and, when comparing its historical volatility, JD Sports Fashion is 4.23 times less risky than Guardforce. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Guardforce AI Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  4.53  in Guardforce AI Co on September 4, 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	98.44%
Values	Daily Returns

JD Sports Fashion  vs.  Guardforce AI Co

JD Sports Fashion

Risk-Adjusted Performance

Weakest

Over the last 90 days JD Sports Fashion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of 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 current disturbance may also be a sign of long term up-swing for the company investors.

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.

Pair Trading with JD Sports and Guardforce

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

The idea behind JD Sports Fashion and Guardforce AI Co 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.