Correlation Between Complete Solaria, and Canadian Solar

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

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

Diversification Opportunities for Complete Solaria, and Canadian Solar

0.36

Correlation Coefficient

Complete Solaria,  Canadian Solar

Weak diversification

The 3 months correlation between Complete and Canadian is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Complete Solaria, and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and Complete Solaria, 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 Complete Solaria, are associated (or correlated) with Canadian Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Solar has no effect on the direction of Complete Solaria, i.e., Complete Solaria, and Canadian Solar go up and down completely randomly.

Pair Corralation between Complete Solaria, and Canadian Solar

Given the investment horizon of 90 days Complete Solaria, is expected to under-perform the Canadian Solar. In addition to that, Complete Solaria, is 1.15 times more volatile than Canadian Solar. It trades about -0.02 of its total potential returns per unit of risk. Canadian Solar is currently generating about -0.02 per unit of volatility. If you would invest  1,112  in Canadian Solar on June 5, 2025 and sell it today you would lose (113.00) from holding Canadian Solar or give up 10.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Complete Solaria,  vs.  Canadian Solar

Complete Solaria,

Risk-Adjusted Performance

Weakest

Over the last 90 days Complete Solaria, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Canadian Solar

Risk-Adjusted Performance

Weakest

Over the last 90 days Canadian Solar has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Canadian Solar is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Complete Solaria, and Canadian Solar

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

The idea behind Complete Solaria, and Canadian Solar 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.