Correlation Between SentinelOne and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both SentinelOne 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 SentinelOne and Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Canadian Solar, you can compare the effects of market volatilities on SentinelOne 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 SentinelOne with a short position of Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Canadian Solar.
Diversification Opportunities for SentinelOne and Canadian Solar
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Canadian is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Canadian Solar go up and down completely randomly.
Pair Corralation between SentinelOne and Canadian Solar
Taking into account the 90-day investment horizon SentinelOne is expected to generate 35.42 times less return on investment than Canadian Solar. But when comparing it to its historical volatility, SentinelOne is 2.84 times less risky than Canadian Solar. It trades about 0.01 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 1,109 in Canadian Solar on April 16, 2025 and sell it today you would earn a total of 181.00 from holding Canadian Solar or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Canadian Solar
Performance |
| Timeline |
| SentinelOne |
| Canadian Solar |
SentinelOne and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Canadian Solar
The main advantage of trading using opposite SentinelOne and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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.| SentinelOne vs. Palantir Technologies Class | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle | SentinelOne vs. CoreWeave, Class A |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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