Correlation Between AGF Management and JinkoSolar Holding

Can any of the company-specific risk be diversified away by investing in both AGF Management and JinkoSolar Holding 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 AGF Management and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGF Management Limited and JinkoSolar Holding Co, you can compare the effects of market volatilities on AGF Management and JinkoSolar Holding 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 AGF Management with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and JinkoSolar Holding.

Diversification Opportunities for AGF Management and JinkoSolar Holding

0.0

Correlation Coefficient

AGF Management  JinkoSolar Holding

Pay attention - limited upside

The 3 months correlation between AGF and JinkoSolar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and AGF Management 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 AGF Management Limited are associated (or correlated) with JinkoSolar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JinkoSolar Holding has no effect on the direction of AGF Management i.e., AGF Management and JinkoSolar Holding go up and down completely randomly.

Pair Corralation between AGF Management and JinkoSolar Holding

If you would invest  0.00  in JinkoSolar Holding Co on December 22, 2024 and sell it today you would earn a total of  0.00  from holding JinkoSolar Holding Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

AGF Management Limited  vs.  JinkoSolar Holding Co

AGF Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGF Management Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AGF Management is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

JinkoSolar Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days JinkoSolar Holding Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, JinkoSolar Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AGF Management and JinkoSolar Holding

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

The idea behind AGF Management Limited and JinkoSolar Holding Co 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.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.