Correlation Between JinkoSolar Holding and Kuo Toong

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

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

Diversification Opportunities for JinkoSolar Holding and Kuo Toong

0.0

Correlation Coefficient

JinkoSolar Holding  Kuo Toong

Pay attention - limited upside

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

Pair Corralation between JinkoSolar Holding and Kuo Toong

If you would invest  0.00  in Kuo Toong International on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Kuo Toong International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

JinkoSolar Holding  vs.  Kuo Toong International

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Kuo Toong International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kuo Toong International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kuo Toong is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with JinkoSolar Holding and Kuo Toong

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

The idea behind JinkoSolar Holding and Kuo Toong International 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.