Correlation Between A10 Network and Taoping

Can any of the company-specific risk be diversified away by investing in both A10 Network 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 A10 Network and Taoping into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between A10 Network and Taoping, you can compare the effects of market volatilities on A10 Network 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 A10 Network with a short position of Taoping. Check out your portfolio center. Please also check ongoing floating volatility patterns of A10 Network and Taoping.

Diversification Opportunities for A10 Network and Taoping

-0.6

Correlation Coefficient

A10 Network  Taoping

Excellent diversification

The 3 months correlation between A10 and Taoping is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding A10 Network and Taoping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taoping and A10 Network 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 A10 Network 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 A10 Network i.e., A10 Network and Taoping go up and down completely randomly.

Pair Corralation between A10 Network and Taoping

Given the investment horizon of 90 days A10 Network is expected to generate 0.12 times more return on investment than Taoping. However, A10 Network is 8.49 times less risky than Taoping. It trades about 0.08 of its potential returns per unit of risk. Taoping is currently generating about 0.01 per unit of risk. If you would invest  1,651  in A10 Network on May 4, 2025 and sell it today you would earn a total of  124.00  from holding A10 Network or generate 7.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

A10 Network  vs.  Taoping

A10 Network

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in A10 Network are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, A10 Network may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 relatively invariable basic indicators, Taoping is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with A10 Network and Taoping

The main advantage of trading using opposite A10 Network and Taoping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A10 Network 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 A10 Network 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.