Correlation Between Canadian Solar and CryptoStar Corp

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

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

Diversification Opportunities for Canadian Solar and CryptoStar Corp

0.21

Correlation Coefficient

Canadian Solar  CryptoStar Corp

Modest diversification

The 3 months correlation between Canadian and CryptoStar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and CryptoStar Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryptoStar Corp 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 CryptoStar Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryptoStar Corp has no effect on the direction of Canadian Solar i.e., Canadian Solar and CryptoStar Corp go up and down completely randomly.

Pair Corralation between Canadian Solar and CryptoStar Corp

Given the investment horizon of 90 days Canadian Solar is expected to generate 0.42 times more return on investment than CryptoStar Corp. However, Canadian Solar is 2.38 times less risky than CryptoStar Corp. It trades about 0.05 of its potential returns per unit of risk. CryptoStar Corp is currently generating about 0.02 per unit of risk. If you would invest  1,085  in Canadian Solar on May 16, 2025 and sell it today you would earn a total of  81.00  from holding Canadian Solar or generate 7.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Canadian Solar  vs.  CryptoStar Corp

Canadian Solar

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward indicators, Canadian Solar may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CryptoStar Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CryptoStar Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CryptoStar Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Canadian Solar and CryptoStar Corp

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

The idea behind Canadian Solar and CryptoStar Corp 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.