Correlation Between GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both GAZTRTECHNIUADR1/5EO01 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 GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAZTRTECHNIUADR15EO01 and JinkoSolar Holding Co, you can compare the effects of market volatilities on GAZTRTECHNIUADR1/5EO01 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 GAZTRTECHNIUADR1/5EO01 with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding.
Diversification Opportunities for GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAZTRTECHNIUADR1/5EO01 and JinkoSolar is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GAZTRTECHNIUADR15EO01 and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and GAZTRTECHNIUADR1/5EO01 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 GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR1/5EO01 i.e., GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding
Assuming the 90 days trading horizon GAZTRTECHNIUADR15EO01 is expected to generate 0.45 times more return on investment than JinkoSolar Holding. However, GAZTRTECHNIUADR15EO01 is 2.21 times less risky than JinkoSolar Holding. It trades about 0.05 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about 0.0 per unit of risk. If you would invest 2,125 in GAZTRTECHNIUADR15EO01 on December 11, 2024 and sell it today you would earn a total of 655.00 from holding GAZTRTECHNIUADR15EO01 or generate 30.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAZTRTECHNIUADR15EO01 vs. JinkoSolar Holding Co
Performance |
| Timeline |
| GAZTRTECHNIUADR1/5EO01 |
| JinkoSolar Holding |
GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding
The main advantage of trading using opposite GAZTRTECHNIUADR1/5EO01 and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAZTRTECHNIUADR1/5EO01 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.| GAZTRTECHNIUADR1/5EO01 vs. GREENX METALS LTD | ||
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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