Correlation Between Canadian Solar and Sunworks
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Sunworks 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 Sunworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Sunworks, you can compare the effects of market volatilities on Canadian Solar and Sunworks 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 Sunworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Sunworks.
Diversification Opportunities for Canadian Solar and Sunworks
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canadian and Sunworks is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks 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 Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of Canadian Solar i.e., Canadian Solar and Sunworks go up and down completely randomly.
Pair Corralation between Canadian Solar and Sunworks
If you would invest 162.00 in Sunworks on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Sunworks or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Canadian Solar vs. Sunworks
Performance |
| Timeline |
| Canadian Solar |
| Sunworks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canadian Solar and Sunworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Solar and Sunworks
The main advantage of trading using opposite Canadian Solar and Sunworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Sunworks 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 Sunworks will offset losses from the drop in Sunworks' long position.| Canadian Solar vs. Maxeon Solar Technologies | Canadian Solar vs. SolarEdge Technologies | Canadian Solar vs. Sunnova Energy International | Canadian Solar vs. Enphase Energy |
| Sunworks vs. Sunrun Inc | Sunworks vs. Maxeon Solar Technologies | Sunworks vs. Canadian Solar | Sunworks vs. First Solar |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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