Correlation Between JinkoSolar Holding and AdTheorent Holding

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

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

Diversification Opportunities for JinkoSolar Holding and AdTheorent Holding

-0.28

Correlation Coefficient

JinkoSolar Holding  AdTheorent Holding

Very good diversification

The 3 months correlation between JinkoSolar and AdTheorent is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and AdTheorent Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdTheorent Holding 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 AdTheorent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdTheorent Holding has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and AdTheorent Holding go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and AdTheorent Holding

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the AdTheorent Holding. In addition to that, JinkoSolar Holding is 1.02 times more volatile than AdTheorent Holding. It trades about 0.0 of its total potential returns per unit of risk. AdTheorent Holding is currently generating about 0.07 per unit of volatility. If you would invest  156.00  in AdTheorent Holding on October 5, 2024 and sell it today you would earn a total of  164.00  from holding AdTheorent Holding or generate 105.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.33%
Values	Daily Returns

JinkoSolar Holding  vs.  AdTheorent Holding

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.

AdTheorent Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AdTheorent Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, AdTheorent Holding is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with JinkoSolar Holding and AdTheorent Holding

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

The idea behind JinkoSolar Holding and AdTheorent Holding 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .