Correlation Between Canadian Solar and Dunham Appreciation

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

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

Diversification Opportunities for Canadian Solar and Dunham Appreciation

0.85

Correlation Coefficient

Canadian Solar  Dunham Appreciation

Very poor diversification

The 3 months correlation between Canadian and Dunham is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Dunham Appreciation Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Appreciation 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 Dunham Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Appreciation has no effect on the direction of Canadian Solar i.e., Canadian Solar and Dunham Appreciation go up and down completely randomly.

Pair Corralation between Canadian Solar and Dunham Appreciation

Given the investment horizon of 90 days Canadian Solar is expected to generate 67.85 times more return on investment than Dunham Appreciation. However, Canadian Solar is 67.85 times more volatile than Dunham Appreciation Income. It trades about 0.14 of its potential returns per unit of risk. Dunham Appreciation Income is currently generating about 0.26 per unit of risk. If you would invest  902.00  in Canadian Solar on April 30, 2025 and sell it today you would earn a total of  298.00  from holding Canadian Solar or generate 33.04% return on investment over 90 days.

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

Canadian Solar  vs.  Dunham Appreciation Income

Canadian Solar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward indicators, Canadian Solar reported solid returns over the last few months and may actually be approaching a breakup point.

Dunham Appreciation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Appreciation Income are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Dunham Appreciation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Canadian Solar and Dunham Appreciation

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

The idea behind Canadian Solar and Dunham Appreciation Income 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.

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 CEOs Directory module to screen CEOs from public companies around the world.