Correlation Between Canadian Solar and Mmngx
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Mmngx 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 Mmngx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Mmngx, you can compare the effects of market volatilities on Canadian Solar and Mmngx 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 Mmngx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Mmngx.
Diversification Opportunities for Canadian Solar and Mmngx
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Canadian and Mmngx is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Mmngx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mmngx 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 Mmngx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mmngx has no effect on the direction of Canadian Solar i.e., Canadian Solar and Mmngx go up and down completely randomly.
Pair Corralation between Canadian Solar and Mmngx
Given the investment horizon of 90 days Canadian Solar is expected to under-perform the Mmngx. In addition to that, Canadian Solar is 3.81 times more volatile than Mmngx. It trades about -0.02 of its total potential returns per unit of risk. Mmngx is currently generating about 0.03 per unit of volatility. If you would invest 1,725 in Mmngx on April 30, 2025 and sell it today you would earn a total of 217.00 from holding Mmngx or generate 12.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 76.06% |
Values | Daily Returns |
Canadian Solar vs. Mmngx
Performance |
Timeline |
Canadian Solar |
Mmngx |
Canadian Solar and Mmngx Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Solar and Mmngx
The main advantage of trading using opposite Canadian Solar and Mmngx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Mmngx 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 Mmngx will offset losses from the drop in Mmngx's long position.Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
Mmngx vs. Massmutual Premier Balanced | Mmngx vs. Massmutual Select T | Mmngx vs. Massmutual Select T | Mmngx vs. Massmutual Select T |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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