Correlation Between Canadian Solar and Vivint Solar
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Vivint 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 Vivint 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 Vivint Solar, you can compare the effects of market volatilities on Canadian Solar and Vivint 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 Vivint Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Vivint Solar.
Diversification Opportunities for Canadian Solar and Vivint Solar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Vivint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Vivint Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivint Solar 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 Vivint Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivint Solar has no effect on the direction of Canadian Solar i.e., Canadian Solar and Vivint Solar go up and down completely randomly.
Pair Corralation between Canadian Solar and Vivint Solar
If you would invest (100.00) in Vivint Solar on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Vivint Solar or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Canadian Solar vs. Vivint Solar
Performance |
| Timeline |
| Canadian Solar |
| Vivint Solar |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canadian Solar and Vivint Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Solar and Vivint Solar
The main advantage of trading using opposite Canadian Solar and Vivint Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Vivint 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 Vivint Solar will offset losses from the drop in Vivint Solar's long position.The idea behind Canadian Solar and Vivint 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.| Vivint Solar vs. Nike Inc | Vivint Solar vs. Figs Inc | Vivint Solar vs. Tandy Leather Factory | Vivint Solar vs. American Eagle Outfitters |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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