Correlation Between ClearVue Technologies and JinkoSolar Holding

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

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

Diversification Opportunities for ClearVue Technologies and JinkoSolar Holding

0.14

Correlation Coefficient

ClearVue Technologies  JinkoSolar Holding

Average diversification

The 3 months correlation between ClearVue and JinkoSolar is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ClearVue Technologies Limited and JinkoSolar Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and ClearVue Technologies 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 ClearVue Technologies 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 ClearVue Technologies i.e., ClearVue Technologies and JinkoSolar Holding go up and down completely randomly.

Pair Corralation between ClearVue Technologies and JinkoSolar Holding

Assuming the 90 days horizon ClearVue Technologies Limited is expected to under-perform the JinkoSolar Holding. In addition to that, ClearVue Technologies is 1.44 times more volatile than JinkoSolar Holding. It trades about -0.04 of its total potential returns per unit of risk. JinkoSolar Holding is currently generating about 0.19 per unit of volatility. If you would invest  1,970  in JinkoSolar Holding on December 5, 2024 and sell it today you would earn a total of  298.00  from holding JinkoSolar Holding or generate 15.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

ClearVue Technologies Limited  vs.  JinkoSolar Holding

ClearVue Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days ClearVue Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

JinkoSolar Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days JinkoSolar Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward-looking signals remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with ClearVue Technologies and JinkoSolar Holding

The main advantage of trading using opposite ClearVue Technologies and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClearVue Technologies 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 ClearVue Technologies Limited and JinkoSolar Holding 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.