Correlation Between Taoping and CLPS

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

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

Diversification Opportunities for Taoping and CLPS

-0.53

Correlation Coefficient

Taoping  CLPS

Excellent diversification

The 3 months correlation between Taoping and CLPS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Taoping and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS 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 CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of Taoping i.e., Taoping and CLPS go up and down completely randomly.

Pair Corralation between Taoping and CLPS

Given the investment horizon of 90 days Taoping is expected to under-perform the CLPS. But the stock apears to be less risky and, when comparing its historical volatility, Taoping is 1.13 times less risky than CLPS. The stock trades about -0.13 of its potential returns per unit of risk. The CLPS Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  95.00  in CLPS Inc on July 22, 2025 and sell it today you would earn a total of  0.00  from holding CLPS Inc or generate 0.0% return on investment over 90 days.

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

Taoping  vs.  CLPS Inc

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.

CLPS Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CLPS Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CLPS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Taoping and CLPS

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

The idea behind Taoping and CLPS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.