Correlation Between JinkoSolar Holding and Starbreeze
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Starbreeze 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 Starbreeze into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and Starbreeze AB, you can compare the effects of market volatilities on JinkoSolar Holding and Starbreeze 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 Starbreeze. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Starbreeze.
Diversification Opportunities for JinkoSolar Holding and Starbreeze
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JinkoSolar and Starbreeze is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Starbreeze AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbreeze 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 Starbreeze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbreeze AB has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Starbreeze go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Starbreeze
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 1.02 times more return on investment than Starbreeze. However, JinkoSolar Holding is 1.02 times more volatile than Starbreeze AB. It trades about 0.01 of its potential returns per unit of risk. Starbreeze AB is currently generating about -0.04 per unit of risk. If you would invest 2,989 in JinkoSolar Holding on October 5, 2024 and sell it today you would lose (388.00) from holding JinkoSolar Holding or give up 12.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.88% |
Values | Daily Returns |
JinkoSolar Holding vs. Starbreeze AB
Performance |
Timeline |
JinkoSolar Holding |
Starbreeze AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JinkoSolar Holding and Starbreeze Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JinkoSolar Holding and Starbreeze
The main advantage of trading using opposite JinkoSolar Holding and Starbreeze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Starbreeze 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 Starbreeze will offset losses from the drop in Starbreeze's long position.JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding vs. Sunnova Energy International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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