Correlation Between Loop Industries and Nano One
Can any of the company-specific risk be diversified away by investing in both Loop Industries and Nano One 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 Loop Industries and Nano One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Industries and Nano One Materials, you can compare the effects of market volatilities on Loop Industries and Nano One 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 Loop Industries with a short position of Nano One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Industries and Nano One.
Diversification Opportunities for Loop Industries and Nano One
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Loop and Nano is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Loop Industries and Nano One Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano One Materials and Loop Industries 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 Loop Industries are associated (or correlated) with Nano One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano One Materials has no effect on the direction of Loop Industries i.e., Loop Industries and Nano One go up and down completely randomly.
Pair Corralation between Loop Industries and Nano One
Given the investment horizon of 90 days Loop Industries is expected to generate 1.13 times more return on investment than Nano One. However, Loop Industries is 1.13 times more volatile than Nano One Materials. It trades about -0.02 of its potential returns per unit of risk. Nano One Materials is currently generating about -0.39 per unit of risk. If you would invest 148.00 in Loop Industries on August 28, 2024 and sell it today you would lose (4.00) from holding Loop Industries or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loop Industries vs. Nano One Materials
Performance |
| Timeline |
| Loop Industries |
| Nano One Materials |
Loop Industries and Nano One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loop Industries and Nano One
The main advantage of trading using opposite Loop Industries and Nano One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Industries position performs unexpectedly, Nano One 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 Nano One will offset losses from the drop in Nano One's long position.| Loop Industries vs. H B Fuller | Loop Industries vs. Element Solutions | Loop Industries vs. Innospec | Loop Industries vs. Cabot |
| Nano One vs. G6 Materials Corp | Nano One vs. Haydale Graphene Industries | Nano One vs. Orica Limited | Nano One vs. Johnson Matthey PLC |
Check out your portfolio center.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |