Correlation Between JinkoSolar Holding and GLATFELTER

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

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

Diversification Opportunities for JinkoSolar Holding and GLATFELTER

0.06

Correlation Coefficient

JinkoSolar Holding  GLATFELTER

Significant diversification

The 3 months correlation between JinkoSolar and GLATFELTER is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and GLATFELTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLATFELTER 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 GLATFELTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLATFELTER has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and GLATFELTER go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and GLATFELTER

Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 1.74 times more return on investment than GLATFELTER. However, JinkoSolar Holding is 1.74 times more volatile than GLATFELTER. It trades about -0.03 of its potential returns per unit of risk. GLATFELTER is currently generating about -0.06 per unit of risk. If you would invest  3,277  in JinkoSolar Holding on October 6, 2024 and sell it today you would lose (676.00) from holding JinkoSolar Holding or give up 20.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

JinkoSolar Holding  vs.  GLATFELTER

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.

GLATFELTER

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GLATFELTER has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with JinkoSolar Holding and GLATFELTER

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

The idea behind JinkoSolar Holding and GLATFELTER 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.