Correlation Between JinkoSolar Holding and Moonpig Group

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

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

Diversification Opportunities for JinkoSolar Holding and Moonpig Group

-0.3

Correlation Coefficient

JinkoSolar Holding  Moonpig Group

Very good diversification

The 3 months correlation between JinkoSolar and Moonpig is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Moonpig Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moonpig Group PLC 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 Moonpig Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moonpig Group PLC has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Moonpig Group go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and Moonpig Group

Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 2.15 times more return on investment than Moonpig Group. However, JinkoSolar Holding is 2.15 times more volatile than Moonpig Group PLC. It trades about 0.04 of its potential returns per unit of risk. Moonpig Group PLC is currently generating about -0.1 per unit of risk. If you would invest  2,042  in JinkoSolar Holding on October 20, 2024 and sell it today you would earn a total of  82.00  from holding JinkoSolar Holding or generate 4.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

JinkoSolar Holding  vs.  Moonpig Group PLC

JinkoSolar Holding

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JinkoSolar Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward-looking signals, JinkoSolar Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Moonpig Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moonpig Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with JinkoSolar Holding and Moonpig Group

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

The idea behind JinkoSolar Holding and Moonpig Group PLC 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..