Correlation Between JinkoSolar Holding and International Strategic
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and International Strategic 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 International Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and International Strategic Equities, you can compare the effects of market volatilities on JinkoSolar Holding and International Strategic 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 International Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and International Strategic.
Diversification Opportunities for JinkoSolar Holding and International Strategic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between JinkoSolar and International is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and International Strategic Equiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Strategic 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 International Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Strategic has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and International Strategic go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and International Strategic
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 5.98 times more return on investment than International Strategic. However, JinkoSolar Holding is 5.98 times more volatile than International Strategic Equities. It trades about 0.07 of its potential returns per unit of risk. International Strategic Equities is currently generating about -0.46 per unit of risk. If you would invest 2,505 in JinkoSolar Holding on October 5, 2024 and sell it today you would earn a total of 96.00 from holding JinkoSolar Holding or generate 3.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JinkoSolar Holding vs. International Strategic Equiti
Performance |
Timeline |
JinkoSolar Holding |
International Strategic |
JinkoSolar Holding and International Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JinkoSolar Holding and International Strategic
The main advantage of trading using opposite JinkoSolar Holding and International Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, International Strategic 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 International Strategic will offset losses from the drop in International Strategic'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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