Correlation Between Taoping and Mediaco Holding

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

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

Diversification Opportunities for Taoping and Mediaco Holding

-0.61

Correlation Coefficient

Taoping  Mediaco Holding

Excellent diversification

The 3 months correlation between Taoping and Mediaco is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Taoping and Mediaco Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaco Holding 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 Mediaco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaco Holding has no effect on the direction of Taoping i.e., Taoping and Mediaco Holding go up and down completely randomly.

Pair Corralation between Taoping and Mediaco Holding

Given the investment horizon of 90 days Taoping is expected to generate 5.62 times less return on investment than Mediaco Holding. In addition to that, Taoping is 2.12 times more volatile than Mediaco Holding. It trades about 0.01 of its total potential returns per unit of risk. Mediaco Holding is currently generating about 0.1 per unit of volatility. If you would invest  94.00  in Mediaco Holding on May 7, 2025 and sell it today you would earn a total of  31.00  from holding Mediaco Holding or generate 32.98% return on investment over 90 days.

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

Taoping  vs.  Mediaco Holding

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 relatively uncertain basic indicators, Taoping may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Mediaco Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mediaco Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Mediaco Holding sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Taoping and Mediaco Holding

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

The idea behind Taoping and Mediaco Holding 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.