Correlation Between Canadian Solar and Fuller Thaler

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

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

Diversification Opportunities for Canadian Solar and Fuller Thaler

0.0

Correlation Coefficient

Canadian Solar  Fuller Thaler

Pay attention - limited upside

The 3 months correlation between Canadian and Fuller is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Fuller Thaler Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuller Thaler Behavioral 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 Fuller Thaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuller Thaler Behavioral has no effect on the direction of Canadian Solar i.e., Canadian Solar and Fuller Thaler go up and down completely randomly.

Pair Corralation between Canadian Solar and Fuller Thaler

Given the investment horizon of 90 days Canadian Solar is expected to generate 6.0 times more return on investment than Fuller Thaler. However, Canadian Solar is 6.0 times more volatile than Fuller Thaler Behavioral. It trades about 0.08 of its potential returns per unit of risk. Fuller Thaler Behavioral is currently generating about 0.13 per unit of risk. If you would invest  1,104  in Canadian Solar on June 30, 2025 and sell it today you would earn a total of  191.00  from holding Canadian Solar or generate 17.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Canadian Solar  vs.  Fuller Thaler Behavioral

Canadian Solar

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 5 (%) 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.

Fuller Thaler Behavioral

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fuller Thaler Behavioral are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fuller Thaler may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Canadian Solar and Fuller Thaler

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

The idea behind Canadian Solar and Fuller Thaler Behavioral 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.