Correlation Between JinkoSolar Holding and R Co

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

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

Diversification Opportunities for JinkoSolar Holding and R Co

0.1

Correlation Coefficient

JinkoSolar Holding  R Co

Average diversification

The 3 months correlation between JinkoSolar and 0P00017SX2 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and R co Valor F in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on R co Valor and JinkoSolar Holding 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 JinkoSolar Holding are associated (or correlated) with R Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of R co Valor has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and R Co go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and R Co

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the R Co. In addition to that, JinkoSolar Holding is 6.56 times more volatile than R co Valor F. It trades about -0.01 of its total potential returns per unit of risk. R co Valor F is currently generating about 0.06 per unit of volatility. If you would invest  250,377  in R co Valor F on October 4, 2024 and sell it today you would earn a total of  52,801  from holding R co Valor F or generate 21.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.0%
Values	Daily Returns

JinkoSolar Holding  vs.  R co Valor F

JinkoSolar Holding

Risk-Adjusted Performance

0 of 100

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 comparatively stable forward-looking signals, JinkoSolar Holding is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

R co Valor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days R co Valor F has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, R Co is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JinkoSolar Holding and R Co

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

The idea behind JinkoSolar Holding and R co Valor F 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.