Correlation Between JinkoSolar Holding and OssDsign

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

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

Diversification Opportunities for JinkoSolar Holding and OssDsign

0.49

Correlation Coefficient

JinkoSolar Holding  OssDsign

Very weak diversification

The 3 months correlation between JinkoSolar and OssDsign is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and OssDsign AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OssDsign AB 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 OssDsign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OssDsign AB has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and OssDsign go up and down completely randomly.

Pair Corralation between JinkoSolar Holding and OssDsign

Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the OssDsign. In addition to that, JinkoSolar Holding is 1.81 times more volatile than OssDsign AB. It trades about -0.03 of its total potential returns per unit of risk. OssDsign AB is currently generating about 0.25 per unit of volatility. If you would invest  646.00  in OssDsign AB on October 5, 2024 and sell it today you would earn a total of  388.00  from holding OssDsign AB or generate 60.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

JinkoSolar Holding  vs.  OssDsign AB

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.

OssDsign AB

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in OssDsign AB are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, OssDsign unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JinkoSolar Holding and OssDsign

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

The idea behind JinkoSolar Holding and OssDsign AB 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 Transaction History module to view history of all your transactions and understand their impact on performance.