Correlation Between JinkoSolar Holding and Hsin Yung

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

By analyzing existing cross correlation between JinkoSolar Holding and Hsin Yung Chien, you can compare the effects of market volatilities on JinkoSolar Holding and Hsin Yung 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 Hsin Yung. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Hsin Yung.

Diversification Opportunities for JinkoSolar Holding and Hsin Yung

0.02

Correlation Coefficient

JinkoSolar Holding  Hsin Yung

Significant diversification

The 3 months correlation between JinkoSolar and Hsin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Hsin Yung Chien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsin Yung Chien 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 Hsin Yung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsin Yung Chien has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Hsin Yung go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and Hsin Yung

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the Hsin Yung. In addition to that, JinkoSolar Holding is 4.68 times more volatile than Hsin Yung Chien. It trades about -0.01 of its total potential returns per unit of risk. Hsin Yung Chien is currently generating about -0.02 per unit of volatility. If you would invest  9,820  in Hsin Yung Chien on October 6, 2024 and sell it today you would lose (790.00) from holding Hsin Yung Chien or give up 8.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.53%
Values	Daily Returns

JinkoSolar Holding  vs.  Hsin Yung Chien

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 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.

Hsin Yung Chien

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hsin Yung Chien has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with JinkoSolar Holding and Hsin Yung

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

The idea behind JinkoSolar Holding and Hsin Yung Chien 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..