Correlation Between Canadian Solar and Value Fund
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Value Fund 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 Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Value Fund Value, you can compare the effects of market volatilities on Canadian Solar and Value Fund 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 Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Value Fund.
Diversification Opportunities for Canadian Solar and Value Fund
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Canadian and Value is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Value Fund Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Value 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 Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Value has no effect on the direction of Canadian Solar i.e., Canadian Solar and Value Fund go up and down completely randomly.
Pair Corralation between Canadian Solar and Value Fund
Given the investment horizon of 90 days Canadian Solar is expected to generate 4.24 times more return on investment than Value Fund. However, Canadian Solar is 4.24 times more volatile than Value Fund Value. It trades about 0.08 of its potential returns per unit of risk. Value Fund Value is currently generating about -0.01 per unit of risk. If you would invest 1,015 in Canadian Solar on May 13, 2025 and sell it today you would earn a total of 143.00 from holding Canadian Solar or generate 14.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.41% |
Values | Daily Returns |
Canadian Solar vs. Value Fund Value
Performance |
Timeline |
Canadian Solar |
Value Fund Value |
Canadian Solar and Value Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Solar and Value Fund
The main advantage of trading using opposite Canadian Solar and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
Value Fund vs. Clipper Fund Inc | Value Fund vs. Muhlenkamp Fund Institutional | Value Fund vs. Partners Value Fund |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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