Correlation Between Canadian Solar and Sysorex

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

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

Diversification Opportunities for Canadian Solar and Sysorex

0.19

Correlation Coefficient

Canadian Solar  Sysorex

Average diversification

The 3 months correlation between Canadian and Sysorex is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Sysorex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysorex 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 Sysorex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysorex has no effect on the direction of Canadian Solar i.e., Canadian Solar and Sysorex go up and down completely randomly.

Pair Corralation between Canadian Solar and Sysorex

Given the investment horizon of 90 days Canadian Solar is expected to generate 93.53 times less return on investment than Sysorex. But when comparing it to its historical volatility, Canadian Solar is 56.5 times less risky than Sysorex. It trades about 0.12 of its potential returns per unit of risk. Sysorex is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Sysorex on May 1, 2025 and sell it today you would earn a total of  0.00  from holding Sysorex or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Canadian Solar  vs.  Sysorex

Canadian Solar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 9 (%) 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.

Sysorex

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sysorex are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Sysorex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Canadian Solar and Sysorex

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

The idea behind Canadian Solar and Sysorex 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.