Correlation Between JinkoSolar Holding and First Solar
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and First 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 First 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 First Solar, you can compare the effects of market volatilities on JinkoSolar Holding and First 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 First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and First Solar.
Diversification Opportunities for JinkoSolar Holding and First Solar
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between JinkoSolar and First is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First 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 First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and First Solar go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and First Solar
Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the First Solar. In addition to that, JinkoSolar Holding is 1.4 times more volatile than First Solar. It trades about -0.15 of its total potential returns per unit of risk. First Solar is currently generating about -0.06 per unit of volatility. If you would invest 20,503 in First Solar on August 28, 2024 and sell it today you would lose (1,221) from holding First Solar or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding vs. First Solar
Performance |
| Timeline |
| JinkoSolar Holding |
| First Solar |
JinkoSolar Holding and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and First Solar
The main advantage of trading using opposite JinkoSolar Holding and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, First 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 First Solar will offset losses from the drop in First 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 |
| First Solar vs. Enphase Energy | First Solar vs. Sunrun Inc | First Solar vs. Canadian Solar | First Solar vs. SolarEdge Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |