Correlation Between Canadian Solar and Equalize Community

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

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

Diversification Opportunities for Canadian Solar and Equalize Community

0.27

Correlation Coefficient

Canadian Solar  Equalize Community

Modest diversification

The 3 months correlation between Canadian and Equalize is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Equalize Community Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equalize Community 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 Equalize Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equalize Community has no effect on the direction of Canadian Solar i.e., Canadian Solar and Equalize Community go up and down completely randomly.

Pair Corralation between Canadian Solar and Equalize Community

Given the investment horizon of 90 days Canadian Solar is expected to generate 33.91 times more return on investment than Equalize Community. However, Canadian Solar is 33.91 times more volatile than Equalize Community Development. It trades about 0.06 of its potential returns per unit of risk. Equalize Community Development is currently generating about 0.11 per unit of risk. If you would invest  1,003  in Canadian Solar on May 27, 2025 and sell it today you would earn a total of  104.00  from holding Canadian Solar or generate 10.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Canadian Solar  vs.  Equalize Community Development

Canadian Solar

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 4 (%) 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.

Equalize Community

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Equalize Community Development are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Equalize Community 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 Equalize Community

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

The idea behind Canadian Solar and Equalize Community Development 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.