Correlation Between Canadian Solar and Intelligent Protection

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

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

Diversification Opportunities for Canadian Solar and Intelligent Protection

-0.31

Correlation Coefficient

Canadian Solar  Intelligent Protection

Very good diversification

The 3 months correlation between Canadian and Intelligent is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Intelligent Protection Managem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Protection 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 Intelligent Protection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Protection has no effect on the direction of Canadian Solar i.e., Canadian Solar and Intelligent Protection go up and down completely randomly.

Pair Corralation between Canadian Solar and Intelligent Protection

Given the investment horizon of 90 days Canadian Solar is expected to generate 1.17 times more return on investment than Intelligent Protection. However, Canadian Solar is 1.17 times more volatile than Intelligent Protection Management. It trades about 0.06 of its potential returns per unit of risk. Intelligent Protection Management is currently generating about -0.06 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Canadian Solar  vs.  Intelligent Protection Managem

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.

Intelligent Protection

Risk-Adjusted Performance

Weakest

Over the last 90 days Intelligent Protection Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Canadian Solar and Intelligent Protection

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

The idea behind Canadian Solar and Intelligent Protection Management 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.