Correlation Between JinkoSolar Holding and Crawford Dividend

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

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

Diversification Opportunities for JinkoSolar Holding and Crawford Dividend

-0.27

Correlation Coefficient

JinkoSolar Holding  Crawford Dividend

Very good diversification

The 3 months correlation between JinkoSolar and Crawford is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Crawford Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Dividend Growth 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 Crawford Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Dividend Growth has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Crawford Dividend go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and Crawford Dividend

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the Crawford Dividend. In addition to that, JinkoSolar Holding is 5.8 times more volatile than Crawford Dividend Growth. It trades about -0.03 of its total potential returns per unit of risk. Crawford Dividend Growth is currently generating about -0.11 per unit of volatility. If you would invest  1,498  in Crawford Dividend Growth on October 5, 2024 and sell it today you would lose (102.00) from holding Crawford Dividend Growth or give up 6.81% of portfolio value over 90 days.

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

JinkoSolar Holding  vs.  Crawford Dividend Growth

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.

Crawford Dividend Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crawford Dividend Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with JinkoSolar Holding and Crawford Dividend

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

The idea behind JinkoSolar Holding and Crawford Dividend Growth 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.