Correlation Between CLPS and Trust Stamp

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

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

Diversification Opportunities for CLPS and Trust Stamp

-0.34

Correlation Coefficient

CLPS  Trust Stamp

Very good diversification

The 3 months correlation between CLPS and Trust is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp and CLPS 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 CLPS Inc are associated (or correlated) with Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of CLPS i.e., CLPS and Trust Stamp go up and down completely randomly.

Pair Corralation between CLPS and Trust Stamp

Given the investment horizon of 90 days CLPS Inc is expected to under-perform the Trust Stamp. But the stock apears to be less risky and, when comparing its historical volatility, CLPS Inc is 2.21 times less risky than Trust Stamp. The stock trades about -0.01 of its potential returns per unit of risk. The Trust Stamp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  165.00  in Trust Stamp on April 21, 2025 and sell it today you would earn a total of  135.00  from holding Trust Stamp or generate 81.82% return on investment over 90 days.

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

CLPS Inc  vs.  Trust Stamp

CLPS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Trust Stamp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Trust Stamp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Trust Stamp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLPS and Trust Stamp

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

The idea behind CLPS Inc and Trust Stamp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.