Correlation Between Bio Rad and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both Bio Rad and Canadian Solar 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 Bio Rad and Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Rad Laboratories and Canadian Solar, you can compare the effects of market volatilities on Bio Rad and Canadian Solar 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 Bio Rad with a short position of Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Canadian Solar.
Diversification Opportunities for Bio Rad and Canadian Solar
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bio and Canadian is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Canadian Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Solar has no effect on the direction of Bio Rad i.e., Bio Rad and Canadian Solar go up and down completely randomly.
Pair Corralation between Bio Rad and Canadian Solar
Considering the 90-day investment horizon Bio Rad is expected to generate 3.48 times less return on investment than Canadian Solar. But when comparing it to its historical volatility, Bio Rad Laboratories is 1.6 times less risky than Canadian Solar. It trades about 0.05 of its potential returns per unit of risk. Canadian Solar is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Canadian Solar on May 2, 2025 and sell it today you would earn a total of 217.00 from holding Canadian Solar or generate 22.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bio Rad Laboratories vs. Canadian Solar
Performance |
Timeline |
Bio Rad Laboratories |
Canadian Solar |
Bio Rad and Canadian Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bio Rad and Canadian Solar
The main advantage of trading using opposite Bio Rad and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, Canadian Solar 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 Canadian Solar will offset losses from the drop in Canadian Solar's long position.Bio Rad vs. Bruker | Bio Rad vs. The Cooper Companies, | Bio Rad vs. Charles River Laboratories | Bio Rad vs. Masimo |
Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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