Correlation Between Maxeon Solar and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both Maxeon Solar 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 Maxeon Solar and Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxeon Solar Technologies and Canadian Solar, you can compare the effects of market volatilities on Maxeon Solar 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 Maxeon Solar with a short position of Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxeon Solar and Canadian Solar.
Diversification Opportunities for Maxeon Solar and Canadian Solar
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maxeon and Canadian is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Maxeon Solar Technologies and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and Maxeon 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 Maxeon Solar Technologies 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 Maxeon Solar i.e., Maxeon Solar and Canadian Solar go up and down completely randomly.
Pair Corralation between Maxeon Solar and Canadian Solar
Given the investment horizon of 90 days Maxeon Solar Technologies is expected to under-perform the Canadian Solar. In addition to that, Maxeon Solar is 2.58 times more volatile than Canadian Solar. It trades about -0.09 of its total potential returns per unit of risk. Canadian Solar is currently generating about -0.03 per unit of volatility. If you would invest 2,210 in Canadian Solar on August 28, 2024 and sell it today you would lose (903.00) from holding Canadian Solar or give up 40.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxeon Solar Technologies vs. Canadian Solar
Performance |
| Timeline |
| Maxeon Solar Technologies |
| Canadian Solar |
Maxeon Solar and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxeon Solar and Canadian Solar
The main advantage of trading using opposite Maxeon Solar and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxeon Solar 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.| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |