Correlation Between JinkoSolar Holding and Abbott Laboratories
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Abbott Laboratories 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 Abbott Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and Abbott Laboratories, you can compare the effects of market volatilities on JinkoSolar Holding and Abbott Laboratories 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 Abbott Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Abbott Laboratories.
Diversification Opportunities for JinkoSolar Holding and Abbott Laboratories
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JinkoSolar and Abbott is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Abbott Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbott Laboratories 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 Abbott Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbott Laboratories has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Abbott Laboratories go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Abbott Laboratories
Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the Abbott Laboratories. In addition to that, JinkoSolar Holding is 3.31 times more volatile than Abbott Laboratories. It trades about -0.01 of its total potential returns per unit of risk. Abbott Laboratories is currently generating about 0.03 per unit of volatility. If you would invest 9,768 in Abbott Laboratories on October 5, 2024 and sell it today you would earn a total of 1,246 from holding Abbott Laboratories or generate 12.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.17% |
Values | Daily Returns |
JinkoSolar Holding vs. Abbott Laboratories
Performance |
Timeline |
JinkoSolar Holding |
Abbott Laboratories |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
JinkoSolar Holding and Abbott Laboratories Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JinkoSolar Holding and Abbott Laboratories
The main advantage of trading using opposite JinkoSolar Holding and Abbott Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Abbott Laboratories 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 Abbott Laboratories will offset losses from the drop in Abbott Laboratories' long position.JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding vs. Sunnova Energy International |
Abbott Laboratories vs. Abbott Laboratories | Abbott Laboratories vs. Abbott Laboratories | Abbott Laboratories vs. Abbott Laboratories |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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