Correlation Between Identiv and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both Identiv 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 Identiv and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and JinkoSolar Holding Co, you can compare the effects of market volatilities on Identiv 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 Identiv with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and JinkoSolar Holding.
Diversification Opportunities for Identiv and JinkoSolar Holding
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Identiv and JinkoSolar is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and Identiv 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 Identiv 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 Identiv i.e., Identiv and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between Identiv and JinkoSolar Holding
Assuming the 90 days trading horizon Identiv is expected to under-perform the JinkoSolar Holding. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.11 times less risky than JinkoSolar Holding. The stock trades about -0.06 of its potential returns per unit of risk. The JinkoSolar Holding Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,296 in JinkoSolar Holding Co on August 28, 2024 and sell it today you would lose (156.00) from holding JinkoSolar Holding Co or give up 6.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. JinkoSolar Holding Co
Performance |
| Timeline |
| Identiv |
| JinkoSolar Holding |
Identiv and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and JinkoSolar Holding
The main advantage of trading using opposite Identiv and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv 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.| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
| JinkoSolar Holding vs. Superior Plus Corp | JinkoSolar Holding vs. Origin Agritech | JinkoSolar Holding vs. Identiv | JinkoSolar Holding vs. INTUITIVE SURGICAL |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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