Correlation Between JinkoSolar Holding and International Strategic

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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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

JinkoSolar Holding  vs.  International Strategic Equiti

 Performance 
       Timeline  
JinkoSolar Holding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
International Strategic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days International Strategic Equities has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

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.
The idea behind JinkoSolar Holding and International Strategic Equities 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 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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