Correlation Between JinkoSolar Holding and Sunnova Energy
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Sunnova Energy 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 Sunnova Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and Sunnova Energy International, you can compare the effects of market volatilities on JinkoSolar Holding and Sunnova Energy 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 Sunnova Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Sunnova Energy.
Diversification Opportunities for JinkoSolar Holding and Sunnova Energy
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JinkoSolar and Sunnova is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Sunnova Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunnova Energy Inter 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 Sunnova Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunnova Energy Inter has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Sunnova Energy go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Sunnova Energy
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 0.57 times more return on investment than Sunnova Energy. However, JinkoSolar Holding is 1.75 times less risky than Sunnova Energy. It trades about 0.02 of its potential returns per unit of risk. Sunnova Energy International is currently generating about 0.01 per unit of risk. If you would invest 2,427 in JinkoSolar Holding on August 28, 2024 and sell it today you would lose (176.00) from holding JinkoSolar Holding or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding vs. Sunnova Energy International
Performance |
| Timeline |
| JinkoSolar Holding |
| Sunnova Energy Inter |
JinkoSolar Holding and Sunnova Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Sunnova Energy
The main advantage of trading using opposite JinkoSolar Holding and Sunnova Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Sunnova Energy 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 Sunnova Energy will offset losses from the drop in Sunnova Energy's long position.| JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding vs. Sunnova Energy International |
| Sunnova Energy vs. Enphase Energy | Sunnova Energy vs. First Solar | Sunnova Energy vs. SolarEdge Technologies | Sunnova Energy vs. JinkoSolar Holding |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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