Correlation Between Canadian Solar and Msvif Emerging
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Msvif Emerging 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 Msvif Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Msvif Emerging Mkts, you can compare the effects of market volatilities on Canadian Solar and Msvif Emerging 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 Msvif Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Msvif Emerging.
Diversification Opportunities for Canadian Solar and Msvif Emerging
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Canadian and Msvif is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Msvif Emerging Mkts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Msvif Emerging Mkts 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 Msvif Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Msvif Emerging Mkts has no effect on the direction of Canadian Solar i.e., Canadian Solar and Msvif Emerging go up and down completely randomly.
Pair Corralation between Canadian Solar and Msvif Emerging
Given the investment horizon of 90 days Canadian Solar is expected to generate 12.95 times more return on investment than Msvif Emerging. However, Canadian Solar is 12.95 times more volatile than Msvif Emerging Mkts. It trades about 0.11 of its potential returns per unit of risk. Msvif Emerging Mkts is currently generating about 0.31 per unit of risk. If you would invest 945.00 in Canadian Solar on May 1, 2025 and sell it today you would earn a total of 227.00 from holding Canadian Solar or generate 24.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.39% |
Values | Daily Returns |
Canadian Solar vs. Msvif Emerging Mkts
Performance |
Timeline |
Canadian Solar |
Msvif Emerging Mkts |
Canadian Solar and Msvif Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Solar and Msvif Emerging
The main advantage of trading using opposite Canadian Solar and Msvif Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Msvif Emerging 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 Msvif Emerging will offset losses from the drop in Msvif Emerging's long position.Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
Msvif Emerging vs. Rationalpier 88 Convertible | Msvif Emerging vs. Virtus Convertible | Msvif Emerging vs. Gabelli Convertible And | Msvif Emerging vs. Advent Claymore Convertible |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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