Correlation Between JinkoSolar Holding and Jabil

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

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

Diversification Opportunities for JinkoSolar Holding and Jabil

0.38

Correlation Coefficient

JinkoSolar Holding  Jabil

Weak diversification

The 3 months correlation between JinkoSolar and Jabil is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Jabil Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Inc 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 Jabil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Inc has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Jabil go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and Jabil

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the Jabil. In addition to that, JinkoSolar Holding is 1.37 times more volatile than Jabil Inc. It trades about 0.0 of its total potential returns per unit of risk. Jabil Inc is currently generating about 0.18 per unit of volatility. If you would invest  12,760  in Jabil Inc on October 4, 2024 and sell it today you would earn a total of  1,130  from holding Jabil Inc or generate 8.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	85.71%
Values	Daily Returns

JinkoSolar Holding  vs.  Jabil Inc

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 comparatively stable forward-looking signals, JinkoSolar Holding is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Jabil Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jabil Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jabil reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JinkoSolar Holding and Jabil

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

The idea behind JinkoSolar Holding and Jabil Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.