Correlation Between JinkoSolar Holding and Sunrun
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Sunrun 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 Sunrun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding Co and Sunrun Inc, you can compare the effects of market volatilities on JinkoSolar Holding and Sunrun 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 Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Sunrun.
Diversification Opportunities for JinkoSolar Holding and Sunrun
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JinkoSolar and Sunrun is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun Inc 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 Co are associated (or correlated) with Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Sunrun go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Sunrun
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to generate 0.85 times more return on investment than Sunrun. However, JinkoSolar Holding Co is 1.18 times less risky than Sunrun. It trades about -0.1 of its potential returns per unit of risk. Sunrun Inc is currently generating about -0.17 per unit of risk. If you would invest 2,365 in JinkoSolar Holding Co on December 30, 2024 and sell it today you would lose (563.00) from holding JinkoSolar Holding Co or give up 23.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
JinkoSolar Holding Co vs. Sunrun Inc
Performance |
Timeline |
JinkoSolar Holding |
Sunrun Inc |
JinkoSolar Holding and Sunrun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JinkoSolar Holding and Sunrun
The main advantage of trading using opposite JinkoSolar Holding and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Sunrun 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 Sunrun will offset losses from the drop in Sunrun's long position.JinkoSolar Holding vs. Axway Software SA | JinkoSolar Holding vs. USU Software AG | JinkoSolar Holding vs. NAGOYA RAILROAD | JinkoSolar Holding vs. Guidewire Software |
Sunrun vs. SLR Investment Corp | Sunrun vs. NXP Semiconductors NV | Sunrun vs. Semiconductor Manufacturing International | Sunrun vs. MagnaChip Semiconductor Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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