Correlation Between JinkoSolar Holding and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Canadian Solar 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 Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and Canadian Solar, you can compare the effects of market volatilities on JinkoSolar Holding and Canadian Solar 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 Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Canadian Solar.
Diversification Opportunities for JinkoSolar Holding and Canadian Solar
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JinkoSolar and Canadian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar 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 Canadian Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Solar has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Canadian Solar go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Canadian Solar
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 1.04 times more return on investment than Canadian Solar. However, JinkoSolar Holding is 1.04 times more volatile than Canadian Solar. It trades about -0.02 of its potential returns per unit of risk. Canadian Solar is currently generating about -0.06 per unit of risk. If you would invest 4,161 in JinkoSolar Holding on January 21, 2025 and sell it today you would lose (2,541) from holding JinkoSolar Holding or give up 61.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding vs. Canadian Solar
Performance |
| Timeline |
| JinkoSolar Holding |
| Canadian Solar |
JinkoSolar Holding and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Canadian Solar
The main advantage of trading using opposite JinkoSolar Holding and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Canadian Solar 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 Canadian Solar will offset losses from the drop in Canadian Solar's long position.| JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding vs. Sunnova Energy International |
| Canadian Solar vs. Maxeon Solar Technologies | Canadian Solar vs. SolarEdge Technologies | Canadian Solar vs. Sunnova Energy International | Canadian Solar vs. Enphase Energy |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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