Correlation Between Canadian Solar and Monolithic Power
Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Monolithic Power 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 Monolithic Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Solar and Monolithic Power Systems, you can compare the effects of market volatilities on Canadian Solar and Monolithic Power 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 Monolithic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Monolithic Power.
Diversification Opportunities for Canadian Solar and Monolithic Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Monolithic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Monolithic Power Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monolithic Power Systems 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 Monolithic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monolithic Power Systems has no effect on the direction of Canadian Solar i.e., Canadian Solar and Monolithic Power go up and down completely randomly.
Pair Corralation between Canadian Solar and Monolithic Power
Given the investment horizon of 90 days Canadian Solar is expected to under-perform the Monolithic Power. In addition to that, Canadian Solar is 1.75 times more volatile than Monolithic Power Systems. It trades about -0.02 of its total potential returns per unit of risk. Monolithic Power Systems is currently generating about 0.13 per unit of volatility. If you would invest 68,562 in Monolithic Power Systems on June 6, 2025 and sell it today you would earn a total of 13,803 from holding Monolithic Power Systems or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Solar vs. Monolithic Power Systems
Performance |
| Timeline |
| Canadian Solar |
| Monolithic Power Systems |
Canadian Solar and Monolithic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Solar and Monolithic Power
The main advantage of trading using opposite Canadian Solar and Monolithic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Monolithic Power 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 Monolithic Power will offset losses from the drop in Monolithic Power's long position.| Canadian Solar vs. JinkoSolar Holding | Canadian Solar vs. First Solar | Canadian Solar vs. Complete Solaria, | Canadian Solar vs. SolarEdge Technologies |
| Monolithic Power vs. Texas Instruments Incorporated | Monolithic Power vs. Microchip Technology | Monolithic Power vs. NXP Semiconductors NV | Monolithic Power vs. ON Semiconductor |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |