Correlation Between JinkoSolar Holding and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Maxeon 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 Maxeon 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 Maxeon Solar Technologies, you can compare the effects of market volatilities on JinkoSolar Holding and Maxeon 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 Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Maxeon Solar.
Diversification Opportunities for JinkoSolar Holding and Maxeon Solar
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JinkoSolar and Maxeon is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies 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 Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Maxeon Solar go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Maxeon Solar
Considering the 90-day investment horizon JinkoSolar Holding is expected to under-perform the Maxeon Solar. But the stock apears to be less risky and, when comparing its historical volatility, JinkoSolar Holding is 3.15 times less risky than Maxeon Solar. The stock trades about -0.04 of its potential returns per unit of risk. The Maxeon Solar Technologies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 623.00 in Maxeon Solar Technologies on August 30, 2024 and sell it today you would earn a total of 257.00 from holding Maxeon Solar Technologies or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding vs. Maxeon Solar Technologies
Performance |
| Timeline |
| JinkoSolar Holding |
| Maxeon Solar Technologies |
JinkoSolar Holding and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Maxeon Solar
The main advantage of trading using opposite JinkoSolar Holding and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Maxeon 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 Maxeon Solar will offset losses from the drop in Maxeon 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 |
| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
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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