Correlation Between Canadian Solar and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Fidelity Advisor 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 Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Fidelity Advisor Health, you can compare the effects of market volatilities on Canadian Solar and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Fidelity Advisor.
Diversification Opportunities for Canadian Solar and Fidelity Advisor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canadian and Fidelity is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Fidelity Advisor Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Health 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Health has no effect on the direction of Canadian Solar i.e., Canadian Solar and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Canadian Solar and Fidelity Advisor
Given the investment horizon of 90 days Canadian Solar is expected to generate 3.6 times more return on investment than Fidelity Advisor. However, Canadian Solar is 3.6 times more volatile than Fidelity Advisor Health. It trades about 0.11 of its potential returns per unit of risk. Fidelity Advisor Health is currently generating about -0.03 per unit of risk. If you would invest 918.00 in Canadian Solar on May 3, 2025 and sell it today you would earn a total of 231.00 from holding Canadian Solar or generate 25.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Canadian Solar vs. Fidelity Advisor Health
Performance |
Timeline |
Canadian Solar |
Fidelity Advisor Health |
Canadian Solar and Fidelity Advisor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Solar and Fidelity Advisor
The main advantage of trading using opposite Canadian Solar and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
Fidelity Advisor vs. Fidelity Advisor Biotechnology | Fidelity Advisor vs. Fidelity Advisor Technology | Fidelity Advisor vs. Fidelity Advisor Growth | Fidelity Advisor vs. Fidelity Advisor 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |