Correlation Between JinkoSolar Holding and GraniteShares FAANG
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and GraniteShares FAANG 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 GraniteShares FAANG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and GraniteShares FAANG ETC, you can compare the effects of market volatilities on JinkoSolar Holding and GraniteShares FAANG 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 GraniteShares FAANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and GraniteShares FAANG.
Diversification Opportunities for JinkoSolar Holding and GraniteShares FAANG
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between JinkoSolar and GraniteShares is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and GraniteShares FAANG ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares FAANG ETC 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 GraniteShares FAANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares FAANG ETC has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and GraniteShares FAANG go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and GraniteShares FAANG
Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the GraniteShares FAANG. In addition to that, JinkoSolar Holding is 3.0 times more volatile than GraniteShares FAANG ETC. It trades about -0.01 of its total potential returns per unit of risk. GraniteShares FAANG ETC is currently generating about 0.15 per unit of volatility. If you would invest 1,896 in GraniteShares FAANG ETC on October 4, 2024 and sell it today you would earn a total of 3,261 from holding GraniteShares FAANG ETC or generate 171.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
JinkoSolar Holding vs. GraniteShares FAANG ETC
Performance |
Timeline |
JinkoSolar Holding |
GraniteShares FAANG ETC |
JinkoSolar Holding and GraniteShares FAANG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JinkoSolar Holding and GraniteShares FAANG
The main advantage of trading using opposite JinkoSolar Holding and GraniteShares FAANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, GraniteShares FAANG 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 GraniteShares FAANG will offset losses from the drop in GraniteShares FAANG's long position.JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding vs. Sunnova Energy International |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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