Correlation Between Arbe Robotics and Tingo

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

By analyzing existing cross correlation between Arbe Robotics Ltd and Tingo Inc, you can compare the effects of market volatilities on Arbe Robotics and Tingo 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 Arbe Robotics with a short position of Tingo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbe Robotics and Tingo.

Diversification Opportunities for Arbe Robotics and Tingo

0.0

Correlation Coefficient

Arbe Robotics  Tingo

Pay attention - limited upside

The 3 months correlation between Arbe and Tingo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arbe Robotics Ltd and Tingo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingo Inc and Arbe Robotics 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 Arbe Robotics Ltd are associated (or correlated) with Tingo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingo Inc has no effect on the direction of Arbe Robotics i.e., Arbe Robotics and Tingo go up and down completely randomly.

Pair Corralation between Arbe Robotics and Tingo

If you would invest  14.00  in Arbe Robotics Ltd on October 7, 2024 and sell it today you would earn a total of  24.00  from holding Arbe Robotics Ltd or generate 171.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.68%
Values	Daily Returns

Arbe Robotics Ltd  vs.  Tingo Inc

Arbe Robotics

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Arbe Robotics Ltd are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, Arbe Robotics showed solid returns over the last few months and may actually be approaching a breakup point.

Tingo Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tingo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tingo is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Arbe Robotics and Tingo

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

The idea behind Arbe Robotics Ltd and Tingo Inc 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.