Correlation Between Taoping and Tingo

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

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

Diversification Opportunities for Taoping and Tingo

0.0

Correlation Coefficient

Taoping  Tingo

Pay attention - limited upside

The 3 months correlation between Taoping and Tingo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Taoping and Tingo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingo Inc 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 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 Taoping i.e., Taoping and Tingo go up and down completely randomly.

Pair Corralation between Taoping and Tingo

If you would invest  0.01  in Tingo Inc on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Tingo Inc or generate 0.0% return on investment over 90 days.

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

Taoping  vs.  Tingo Inc

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.

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 recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Taoping and Tingo

The main advantage of trading using opposite Taoping and Tingo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taoping 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 Taoping 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.