Correlation Between Automatic Data and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both Automatic Data 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 Automatic Data and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Data Processing and JinkoSolar Holding Co, you can compare the effects of market volatilities on Automatic Data 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 Automatic Data with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and JinkoSolar Holding.
Diversification Opportunities for Automatic Data and JinkoSolar Holding
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Automatic and JinkoSolar is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and Automatic Data 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 Automatic Data Processing 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 Automatic Data i.e., Automatic Data and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between Automatic Data and JinkoSolar Holding
Assuming the 90 days horizon Automatic Data Processing is expected to generate 0.39 times more return on investment than JinkoSolar Holding. However, Automatic Data Processing is 2.55 times less risky than JinkoSolar Holding. It trades about -0.06 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about -0.08 per unit of risk. If you would invest 28,694 in Automatic Data Processing on October 10, 2024 and sell it today you would lose (499.00) from holding Automatic Data Processing or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automatic Data Processing vs. JinkoSolar Holding Co
Performance |
| Timeline |
| Automatic Data Processing |
| JinkoSolar Holding |
Automatic Data and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Data and JinkoSolar Holding
The main advantage of trading using opposite Automatic Data and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Data 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.| Automatic Data vs. Cass Information Systems | Automatic Data vs. Data Modul AG | Automatic Data vs. MICRONIC MYDATA | Automatic Data vs. Information Services International Dentsu |
| JinkoSolar Holding vs. Rocket Internet SE | JinkoSolar Holding vs. Japan Tobacco | JinkoSolar Holding vs. NORTHEAST UTILITIES | JinkoSolar Holding vs. Liberty Broadband |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |