Correlation Between Canadian Solar and Tiaa-cref Large-cap

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

By analyzing existing cross correlation between Canadian Solar and Tiaa Cref Large Cap Value, you can compare the effects of market volatilities on Canadian Solar and Tiaa-cref Large-cap 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 Tiaa-cref Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Tiaa-cref Large-cap.

Diversification Opportunities for Canadian Solar and Tiaa-cref Large-cap

0.77

Correlation Coefficient

Canadian Solar  Tiaa-cref Large-cap

Poor diversification

The 3 months correlation between Canadian and Tiaa-cref is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Tiaa Cref Large Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Large-cap 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 Tiaa-cref Large-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Large-cap has no effect on the direction of Canadian Solar i.e., Canadian Solar and Tiaa-cref Large-cap go up and down completely randomly.

Pair Corralation between Canadian Solar and Tiaa-cref Large-cap

Given the investment horizon of 90 days Canadian Solar is expected to generate 7.27 times more return on investment than Tiaa-cref Large-cap. However, Canadian Solar is 7.27 times more volatile than Tiaa Cref Large Cap Value. It trades about 0.06 of its potential returns per unit of risk. Tiaa Cref Large Cap Value is currently generating about 0.19 per unit of risk. If you would invest  1,003  in Canadian Solar on May 26, 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 Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Canadian Solar  vs.  Tiaa Cref Large Cap Value

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.

Tiaa-cref Large-cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Large Cap Value are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Tiaa-cref Large-cap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Canadian Solar and Tiaa-cref Large-cap

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

The idea behind Canadian Solar and Tiaa Cref Large Cap Value 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.