Correlation Between Canadian Solar and Api Multi

Can any of the company-specific risk be diversified away by investing in both Canadian Solar and Api Multi 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 Api Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canadian Solar and Api Multi Asset Income, you can compare the effects of market volatilities on Canadian Solar and Api Multi 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 Api Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Solar and Api Multi.

Diversification Opportunities for Canadian Solar and Api Multi

0.52

Correlation Coefficient

Canadian Solar  Api Multi

Very weak diversification

The 3 months correlation between Canadian and Api is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Solar and Api Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Api Multi Asset 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 Api Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Api Multi Asset has no effect on the direction of Canadian Solar i.e., Canadian Solar and Api Multi go up and down completely randomly.

Pair Corralation between Canadian Solar and Api Multi

Given the investment horizon of 90 days Canadian Solar is expected to generate 22.61 times more return on investment than Api Multi. However, Canadian Solar is 22.61 times more volatile than Api Multi Asset Income. It trades about 0.12 of its potential returns per unit of risk. Api Multi Asset Income is currently generating about 0.16 per unit of risk. If you would invest  896.00  in Canadian Solar on May 6, 2025 and sell it today you would earn a total of  253.00  from holding Canadian Solar or generate 28.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Canadian Solar  vs.  Api Multi Asset Income

Canadian Solar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Solar are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward indicators, Canadian Solar reported solid returns over the last few months and may actually be approaching a breakup point.

Api Multi Asset

Risk-Adjusted Performance

Good

Over the last 90 days Api Multi Asset Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Api Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Canadian Solar and Api Multi

The main advantage of trading using opposite Canadian Solar and Api Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Solar position performs unexpectedly, Api Multi 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 Api Multi will offset losses from the drop in Api Multi's long position.

The idea behind Canadian Solar and Api Multi Asset Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.