Correlation Between Canadian Solar and Ascent Solar
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Ascent 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 Canadian Solar and Ascent Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Ascent Solar Technologies,, you can compare the effects of market volatilities on Canadian Solar and Ascent 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 Canadian Solar with a short position of Ascent Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Ascent Solar.
Diversification Opportunities for Canadian Solar and Ascent Solar
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canadian and Ascent is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Ascent Solar Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascent Solar Technol 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 Ascent Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascent Solar Technol has no effect on the direction of Canadian Solar i.e., Canadian Solar and Ascent Solar go up and down completely randomly.
Pair Corralation between Canadian Solar and Ascent Solar
Given the investment horizon of 90 days Canadian Solar is expected to generate 1.17 times more return on investment than Ascent Solar. However, Canadian Solar is 1.17 times more volatile than Ascent Solar Technologies,. It trades about -0.04 of its potential returns per unit of risk. Ascent Solar Technologies, is currently generating about -0.21 per unit of risk. If you would invest 1,414 in Canadian Solar on August 31, 2024 and sell it today you would lose (138.00) from holding Canadian Solar or give up 9.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Solar vs. Ascent Solar Technologies,
Performance |
| Timeline |
| Canadian Solar |
| Ascent Solar Technol |
Canadian Solar and Ascent Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Solar and Ascent Solar
The main advantage of trading using opposite Canadian Solar and Ascent Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Ascent 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 Ascent Solar will offset losses from the drop in Ascent Solar's long position.| Canadian Solar vs. Maxeon Solar Technologies | Canadian Solar vs. SolarEdge Technologies | Canadian Solar vs. Sunnova Energy International | Canadian Solar vs. Enphase Energy |
| Ascent Solar vs. Tesla Inc | Ascent Solar vs. Tyson Foods | Ascent Solar vs. Ziff Davis | Ascent Solar vs. Anterix |
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 CEOs Directory module to screen CEOs from public companies around the world.
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