Correlation Between Data Storage and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both Data Storage 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 Data Storage and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Storage Corp and JinkoSolar Holding Co, you can compare the effects of market volatilities on Data Storage 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 Data Storage with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Storage and JinkoSolar Holding.
Diversification Opportunities for Data Storage and JinkoSolar Holding
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Data and JinkoSolar is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Data Storage Corp and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and Data Storage 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 Data Storage Corp 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 Data Storage i.e., Data Storage and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between Data Storage and JinkoSolar Holding
Given the investment horizon of 90 days Data Storage Corp is expected to generate 1.19 times more return on investment than JinkoSolar Holding. However, Data Storage is 1.19 times more volatile than JinkoSolar Holding Co. It trades about 0.02 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about 0.01 per unit of risk. If you would invest 380.00 in Data Storage Corp on December 11, 2024 and sell it today you would lose (30.00) from holding Data Storage Corp or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.89% |
| Values | Daily Returns |
Data Storage Corp vs. JinkoSolar Holding Co
Performance |
| Timeline |
| Data Storage Corp |
| JinkoSolar Holding |
Data Storage and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Storage and JinkoSolar Holding
The main advantage of trading using opposite Data Storage and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Storage 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.| Data Storage vs. Castellum | ||
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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