Correlation Between Canadian Solar and Intel
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Intel, you can compare the effects of market volatilities on Canadian Solar and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Intel.
Diversification Opportunities for Canadian Solar and Intel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canadian and Intel is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Canadian Solar i.e., Canadian Solar and Intel go up and down completely randomly.
Pair Corralation between Canadian Solar and Intel
Given the investment horizon of 90 days Canadian Solar is expected to under-perform the Intel. In addition to that, Canadian Solar is 1.39 times more volatile than Intel. It trades about -0.05 of its total potential returns per unit of risk. Intel is currently generating about -0.01 per unit of volatility. If you would invest 3,241 in Intel on September 2, 2024 and sell it today you would lose (836.00) from holding Intel or give up 25.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Solar vs. Intel
Performance |
| Timeline |
| Canadian Solar |
| Intel |
Canadian Solar and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Solar and Intel
The main advantage of trading using opposite Canadian Solar and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel'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 |
| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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