Correlation Between CLOVER HEALTH and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both CLOVER HEALTH and JinkoSolar Holding 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 CLOVER HEALTH and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLOVER HEALTH INV and JinkoSolar Holding Co, you can compare the effects of market volatilities on CLOVER HEALTH and JinkoSolar Holding 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 CLOVER HEALTH with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLOVER HEALTH and JinkoSolar Holding.
Diversification Opportunities for CLOVER HEALTH and JinkoSolar Holding
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CLOVER and JinkoSolar is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CLOVER HEALTH INV and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and CLOVER HEALTH 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 CLOVER HEALTH INV are associated (or correlated) with JinkoSolar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JinkoSolar Holding has no effect on the direction of CLOVER HEALTH i.e., CLOVER HEALTH and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between CLOVER HEALTH and JinkoSolar Holding
Assuming the 90 days horizon CLOVER HEALTH INV is expected to generate 0.74 times more return on investment than JinkoSolar Holding. However, CLOVER HEALTH INV is 1.35 times less risky than JinkoSolar Holding. It trades about 0.44 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about -0.23 per unit of risk. If you would invest 307.00 in CLOVER HEALTH INV on October 24, 2024 and sell it today you would earn a total of 84.00 from holding CLOVER HEALTH INV or generate 27.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CLOVER HEALTH INV vs. JinkoSolar Holding Co
Performance |
Timeline |
CLOVER HEALTH INV |
JinkoSolar Holding |
CLOVER HEALTH and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CLOVER HEALTH and JinkoSolar Holding
The main advantage of trading using opposite CLOVER HEALTH and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLOVER HEALTH position performs unexpectedly, JinkoSolar Holding 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 JinkoSolar Holding will offset losses from the drop in JinkoSolar Holding's long position.CLOVER HEALTH vs. SHIP HEALTHCARE HLDGINC | CLOVER HEALTH vs. Cardinal Health | CLOVER HEALTH vs. GEAR4MUSIC LS 10 | CLOVER HEALTH vs. Suntory Beverage Food |
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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