Correlation Between Tingo and Arbe Robotics

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

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

Diversification Opportunities for Tingo and Arbe Robotics

0.0

Correlation Coefficient

Tingo  Arbe Robotics

Pay attention - limited upside

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

Pair Corralation between Tingo and Arbe Robotics

Given the investment horizon of 90 days Tingo is expected to generate 33.67 times less return on investment than Arbe Robotics. But when comparing it to its historical volatility, Tingo Inc is 5.83 times less risky than Arbe Robotics. It trades about 0.01 of its potential returns per unit of risk. Arbe Robotics Ltd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Arbe Robotics Ltd on October 22, 2024 and sell it today you would earn a total of  20.50  from holding Arbe Robotics Ltd or generate 52.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.32%
Values	Daily Returns

Tingo Inc  vs.  Arbe Robotics Ltd

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.

Arbe Robotics

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Arbe Robotics Ltd are ranked lower than 12 (%) 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.

Pair Trading with Tingo and Arbe Robotics

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

The idea behind Tingo Inc and Arbe Robotics Ltd 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.