Correlation Between Canadian Solar and Rami Levi

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

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

Diversification Opportunities for Canadian Solar and Rami Levi

0.7

Correlation Coefficient

Canadian Solar  Rami Levi

Poor diversification

The 3 months correlation between Canadian and Rami is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Rami Levi Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rami Levi Chain 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 Rami Levi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rami Levi Chain has no effect on the direction of Canadian Solar i.e., Canadian Solar and Rami Levi go up and down completely randomly.

Pair Corralation between Canadian Solar and Rami Levi

Given the investment horizon of 90 days Canadian Solar is expected to generate 23.32 times more return on investment than Rami Levi. However, Canadian Solar is 23.32 times more volatile than Rami Levi Chain. It trades about 0.11 of its potential returns per unit of risk. Rami Levi Chain is currently generating about 0.12 per unit of risk. If you would invest  918.00  in Canadian Solar on May 3, 2025 and sell it today you would earn a total of  214.00  from holding Canadian Solar or generate 23.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Canadian Solar  vs.  Rami Levi Chain

Canadian Solar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 8 (%) 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.

Rami Levi Chain

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rami Levi Chain are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Rami Levi is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Canadian Solar and Rami Levi

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

The idea behind Canadian Solar and Rami Levi Chain 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.