Correlation Between US GoldMining and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both US GoldMining 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 US GoldMining and Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US GoldMining Common and Canadian Solar, you can compare the effects of market volatilities on US GoldMining 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 US GoldMining with a short position of Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of US GoldMining and Canadian Solar.
Diversification Opportunities for US GoldMining and Canadian Solar
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between USGO and Canadian is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding US GoldMining Common and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar and US GoldMining 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 US GoldMining Common 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 US GoldMining i.e., US GoldMining and Canadian Solar go up and down completely randomly.
Pair Corralation between US GoldMining and Canadian Solar
Given the investment horizon of 90 days US GoldMining Common is expected to under-perform the Canadian Solar. But the stock apears to be less risky and, when comparing its historical volatility, US GoldMining Common is 1.43 times less risky than Canadian Solar. The stock trades about -0.01 of its potential returns per unit of risk. The Canadian Solar is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,008 in Canadian Solar on June 1, 2025 and sell it today you would lose (57.00) from holding Canadian Solar or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US GoldMining Common vs. Canadian Solar
Performance |
| Timeline |
| US GoldMining Common |
| Canadian Solar |
US GoldMining and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US GoldMining and Canadian Solar
The main advantage of trading using opposite US GoldMining and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US GoldMining 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.| US GoldMining vs. NorthIsle Copper and | US GoldMining vs. Trilogy Metals | US GoldMining vs. International Tower Hill | US GoldMining vs. Avino Silver Gold |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |