Correlation Between Sharing Economy and Taoping

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

By analyzing existing cross correlation between Sharing Economy International and Taoping, you can compare the effects of market volatilities on Sharing Economy and Taoping 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 Sharing Economy with a short position of Taoping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharing Economy and Taoping.

Diversification Opportunities for Sharing Economy and Taoping

0.0

Correlation Coefficient

Sharing Economy  Taoping

Pay attention - limited upside

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

Pair Corralation between Sharing Economy and Taoping

If you would invest (100.00) in Sharing Economy International on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Sharing Economy International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sharing Economy International  vs.  Taoping

Sharing Economy Inte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sharing Economy International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Sharing Economy is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Taoping

Risk-Adjusted Performance

Very Weak

Over the last 90 days Taoping has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Sharing Economy and Taoping

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

The idea behind Sharing Economy International and Taoping 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.