Correlation Between Taoping and Repay Holdings

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

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

Diversification Opportunities for Taoping and Repay Holdings

-0.28

Correlation Coefficient

Taoping  Repay Holdings

Very good diversification

The 3 months correlation between Taoping and Repay is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Taoping and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp and Taoping 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 Taoping are associated (or correlated) with Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Taoping i.e., Taoping and Repay Holdings go up and down completely randomly.

Pair Corralation between Taoping and Repay Holdings

Given the investment horizon of 90 days Taoping is expected to under-perform the Repay Holdings. In addition to that, Taoping is 2.43 times more volatile than Repay Holdings Corp. It trades about -0.12 of its total potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.0 per unit of volatility. If you would invest  785.00  in Repay Holdings Corp on October 6, 2024 and sell it today you would lose (15.00) from holding Repay Holdings Corp or give up 1.91% of portfolio value over 90 days.

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

Taoping  vs.  Repay Holdings Corp

Taoping

Risk-Adjusted Performance

0 of 100

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 February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Repay Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Repay Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Repay Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Taoping and Repay Holdings

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

The idea behind Taoping and Repay Holdings Corp 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 Anywhere module to track or share privately all of your investments from the convenience of any device.