Correlation Between Canadian Solar and Centerspace
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Centerspace 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 Canadian Solar and Centerspace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Centerspace, you can compare the effects of market volatilities on Canadian Solar and Centerspace 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 Canadian Solar with a short position of Centerspace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Centerspace.
Diversification Opportunities for Canadian Solar and Centerspace
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canadian and Centerspace is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Centerspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerspace and Canadian Solar 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 Canadian Solar are associated (or correlated) with Centerspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerspace has no effect on the direction of Canadian Solar i.e., Canadian Solar and Centerspace go up and down completely randomly.
Pair Corralation between Canadian Solar and Centerspace
Given the investment horizon of 90 days Canadian Solar is expected to generate 2.64 times more return on investment than Centerspace. However, Canadian Solar is 2.64 times more volatile than Centerspace. It trades about 0.1 of its potential returns per unit of risk. Centerspace is currently generating about -0.12 per unit of risk. If you would invest 979.00 in Canadian Solar on May 9, 2025 and sell it today you would earn a total of 193.00 from holding Canadian Solar or generate 19.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Canadian Solar vs. Centerspace
Performance |
Timeline |
Canadian Solar |
Centerspace |
Canadian Solar and Centerspace Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Solar and Centerspace
The main advantage of trading using opposite Canadian Solar and Centerspace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Centerspace 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 Centerspace will offset losses from the drop in Centerspace's long position.Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
Centerspace vs. BRT Realty Trust | Centerspace vs. China Automotive Systems | Centerspace vs. Clipper Realty | Centerspace vs. China Yuchai International |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Stocks Directory Find actively traded stocks across global markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |