Correlation Between Anhui Shenjian and Loop Industries

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Can any of the company-specific risk be diversified away by investing in both Anhui Shenjian and Loop Industries 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 Anhui Shenjian and Loop Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Shenjian New and Loop Industries, you can compare the effects of market volatilities on Anhui Shenjian and Loop Industries 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 Anhui Shenjian with a short position of Loop Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Shenjian and Loop Industries.

Diversification Opportunities for Anhui Shenjian and Loop Industries

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Anhui and Loop is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Shenjian New and Loop Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Industries and Anhui Shenjian 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 Anhui Shenjian New are associated (or correlated) with Loop Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Industries has no effect on the direction of Anhui Shenjian i.e., Anhui Shenjian and Loop Industries go up and down completely randomly.

Pair Corralation between Anhui Shenjian and Loop Industries

Assuming the 90 days trading horizon Anhui Shenjian New is expected to generate 0.29 times more return on investment than Loop Industries. However, Anhui Shenjian New is 3.4 times less risky than Loop Industries. It trades about -0.05 of its potential returns per unit of risk. Loop Industries is currently generating about -0.05 per unit of risk. If you would invest  683.00  in Anhui Shenjian New on August 27, 2025 and sell it today you would lose (40.00) from holding Anhui Shenjian New or give up 5.86% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy92.19%
ValuesDaily Returns

Anhui Shenjian New  vs.  Loop Industries

 Performance 
       Timeline  
Anhui Shenjian New 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Anhui Shenjian New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Anhui Shenjian is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Loop Industries 

Risk-Adjusted Performance

Weakest

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

Anhui Shenjian and Loop Industries Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anhui Shenjian and Loop Industries

The main advantage of trading using opposite Anhui Shenjian and Loop Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Shenjian position performs unexpectedly, Loop Industries 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 Loop Industries will offset losses from the drop in Loop Industries' long position.
The idea behind Anhui Shenjian New and Loop Industries 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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