Correlation Between Canadian Solar and InTest
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and InTest 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 InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and inTest, you can compare the effects of market volatilities on Canadian Solar and InTest 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 InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and InTest.
Diversification Opportunities for Canadian Solar and InTest
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canadian and InTest is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Canadian Solar i.e., Canadian Solar and InTest go up and down completely randomly.
Pair Corralation between Canadian Solar and InTest
Given the investment horizon of 90 days Canadian Solar is expected to generate 1.44 times more return on investment than InTest. However, Canadian Solar is 1.44 times more volatile than inTest. It trades about 0.15 of its potential returns per unit of risk. inTest is currently generating about 0.1 per unit of risk. If you would invest 928.00 in Canadian Solar on April 24, 2025 and sell it today you would earn a total of 418.00 from holding Canadian Solar or generate 45.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Canadian Solar vs. inTest
Performance |
Timeline |
Canadian Solar |
inTest |
Canadian Solar and InTest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Solar and InTest
The main advantage of trading using opposite Canadian Solar and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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