Correlation Between JinkoSolar Holding and POET Technologies
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and POET Technologies 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 POET Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and POET Technologies, you can compare the effects of market volatilities on JinkoSolar Holding and POET Technologies 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 POET Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and POET Technologies.
Diversification Opportunities for JinkoSolar Holding and POET Technologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JinkoSolar and POET is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and POET Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POET 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 POET Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POET Technologies has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and POET Technologies go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and POET Technologies
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 1.44 times more return on investment than POET Technologies. However, JinkoSolar Holding is 1.44 times more volatile than POET Technologies. It trades about 0.05 of its potential returns per unit of risk. POET Technologies 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding vs. POET Technologies
Performance |
| Timeline |
| JinkoSolar Holding |
| POET Technologies |
JinkoSolar Holding and POET Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and POET Technologies
The main advantage of trading using opposite JinkoSolar Holding and POET Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, POET Technologies 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 POET Technologies will offset losses from the drop in POET Technologies' long position.| JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding vs. Sunnova Energy International |
| POET Technologies vs. Pixelworks | POET Technologies vs. Valens | POET Technologies vs. CEVA Inc | POET Technologies vs. EMCORE |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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