Correlation Between Infrared Cameras and Taoping

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

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

Diversification Opportunities for Infrared Cameras and Taoping

0.33

Correlation Coefficient

Infrared Cameras  Taoping

Weak diversification

The 3 months correlation between Infrared and Taoping is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Infrared Cameras Holdings and Taoping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taoping and Infrared Cameras 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 Infrared Cameras Holdings 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 Infrared Cameras i.e., Infrared Cameras and Taoping go up and down completely randomly.

Pair Corralation between Infrared Cameras and Taoping

Given the investment horizon of 90 days Infrared Cameras Holdings is expected to generate 2.17 times more return on investment than Taoping. However, Infrared Cameras is 2.17 times more volatile than Taoping. It trades about 0.11 of its potential returns per unit of risk. Taoping is currently generating about -0.1 per unit of risk. If you would invest  76.00  in Infrared Cameras Holdings on July 26, 2025 and sell it today you would earn a total of  59.00  from holding Infrared Cameras Holdings or generate 77.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Infrared Cameras Holdings  vs.  Taoping

Infrared Cameras Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Infrared Cameras Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Infrared Cameras demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Taoping

Risk-Adjusted Performance

Weakest

Over the last 90 days Taoping has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Infrared Cameras and Taoping

The main advantage of trading using opposite Infrared Cameras and Taoping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infrared Cameras 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 Infrared Cameras Holdings 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 CEOs Directory module to screen CEOs from public companies around the world.