Correlation Between YieldMax AMZN and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both YieldMax AMZN 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 YieldMax AMZN and Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax AMZN Option and Canadian Solar, you can compare the effects of market volatilities on YieldMax AMZN 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 YieldMax AMZN with a short position of Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax AMZN and Canadian Solar.
Diversification Opportunities for YieldMax AMZN and Canadian Solar
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YieldMax and Canadian is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and YieldMax AMZN 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 YieldMax AMZN Option 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 YieldMax AMZN i.e., YieldMax AMZN and Canadian Solar go up and down completely randomly.
Pair Corralation between YieldMax AMZN and Canadian Solar
Given the investment horizon of 90 days YieldMax AMZN is expected to generate 2.84 times less return on investment than Canadian Solar. But when comparing it to its historical volatility, YieldMax AMZN Option is 6.22 times less risky than Canadian Solar. It trades about 0.41 of its potential returns per unit of risk. Canadian Solar is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,104 in Canadian Solar on April 29, 2025 and sell it today you would earn a total of 171.00 from holding Canadian Solar or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
YieldMax AMZN Option vs. Canadian Solar
Performance |
| Timeline |
| YieldMax AMZN Option |
| Canadian Solar |
YieldMax AMZN and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax AMZN and Canadian Solar
The main advantage of trading using opposite YieldMax AMZN and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax AMZN 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.| YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. T Rex 2X Long | YieldMax AMZN vs. Direxion Daily META |
| Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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