Correlation Between JinkoSolar Holding and AstroNova
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and AstroNova 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 JinkoSolar Holding and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and AstroNova, you can compare the effects of market volatilities on JinkoSolar Holding and AstroNova 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 JinkoSolar Holding with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and AstroNova.
Diversification Opportunities for JinkoSolar Holding and AstroNova
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JinkoSolar and AstroNova is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and JinkoSolar Holding 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 JinkoSolar Holding are associated (or correlated) with AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and AstroNova go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and AstroNova
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 2.3 times more return on investment than AstroNova. However, JinkoSolar Holding is 2.3 times more volatile than AstroNova. It trades about 0.06 of its potential returns per unit of risk. AstroNova is currently generating about 0.08 per unit of risk. If you would invest 2,095 in JinkoSolar Holding on August 24, 2024 and sell it today you would earn a total of 72.00 from holding JinkoSolar Holding or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding vs. AstroNova
Performance |
| Timeline |
| JinkoSolar Holding |
| AstroNova |
JinkoSolar Holding and AstroNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and AstroNova
The main advantage of trading using opposite JinkoSolar Holding and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, AstroNova 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 AstroNova will offset losses from the drop in AstroNova's long position.| JinkoSolar Holding vs. Small Cap Core | JinkoSolar Holding vs. Freedom Holding Corp | JinkoSolar Holding vs. Gfl Environmental Holdings | JinkoSolar Holding vs. Growth Fund Of |
| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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