Correlation Between JinkoSolar Holding and KUAISHOU TECHNOLOGY

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

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

Diversification Opportunities for JinkoSolar Holding and KUAISHOU TECHNOLOGY

-0.35

Correlation Coefficient

JinkoSolar Holding  KUAISHOU TECHNOLOGY

Very good diversification

The 3 months correlation between JinkoSolar and KUAISHOU is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and KUAISHOU TECHNOLOGY CLB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KUAISHOU TECHNOLOGY CLB 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 KUAISHOU TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KUAISHOU TECHNOLOGY CLB has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and KUAISHOU TECHNOLOGY go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and KUAISHOU TECHNOLOGY

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the KUAISHOU TECHNOLOGY. In addition to that, JinkoSolar Holding is 1.91 times more volatile than KUAISHOU TECHNOLOGY CLB. It trades about -0.13 of its total potential returns per unit of risk. KUAISHOU TECHNOLOGY CLB is currently generating about -0.21 per unit of volatility. If you would invest  545.00  in KUAISHOU TECHNOLOGY CLB on October 20, 2024 and sell it today you would lose (43.00) from holding KUAISHOU TECHNOLOGY CLB or give up 7.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.0%
Values	Daily Returns

JinkoSolar Holding  vs.  KUAISHOU TECHNOLOGY CLB

JinkoSolar Holding

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JinkoSolar Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward-looking signals, JinkoSolar Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

KUAISHOU TECHNOLOGY CLB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with JinkoSolar Holding and KUAISHOU TECHNOLOGY

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

The idea behind JinkoSolar Holding and KUAISHOU TECHNOLOGY CLB 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.