Correlation Between Digimarc and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both Digimarc 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 Digimarc and Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digimarc and Canadian Solar, you can compare the effects of market volatilities on Digimarc 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 Digimarc with a short position of Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and Canadian Solar.
Diversification Opportunities for Digimarc and Canadian Solar
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digimarc and Canadian is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and Digimarc 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 Digimarc 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 Digimarc i.e., Digimarc and Canadian Solar go up and down completely randomly.
Pair Corralation between Digimarc and Canadian Solar
Given the investment horizon of 90 days Digimarc is expected to generate 3.4 times less return on investment than Canadian Solar. But when comparing it to its historical volatility, Digimarc is 1.71 times less risky than Canadian Solar. It trades about 0.09 of its potential returns per unit of risk. Canadian Solar is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 732.00 in Canadian Solar on April 19, 2025 and sell it today you would earn a total of 505.00 from holding Canadian Solar or generate 68.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digimarc vs. Canadian Solar
Performance |
| Timeline |
| Digimarc |
| Canadian Solar |
Digimarc and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digimarc and Canadian Solar
The main advantage of trading using opposite Digimarc and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc 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.| Digimarc vs. CSP Inc | Digimarc vs. Donegal Group A | Digimarc vs. Digi International | Digimarc vs. Enterprise Financial Services |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |