Correlation Between JinkoSolar Holding and Xerox Corp
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Xerox Corp 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 Xerox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and Xerox Corp, you can compare the effects of market volatilities on JinkoSolar Holding and Xerox Corp 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 Xerox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Xerox Corp.
Diversification Opportunities for JinkoSolar Holding and Xerox Corp
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JinkoSolar and Xerox is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Xerox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xerox Corp 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 Xerox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xerox Corp has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Xerox Corp go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Xerox Corp
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 1.62 times more return on investment than Xerox Corp. However, JinkoSolar Holding is 1.62 times more volatile than Xerox Corp. It trades about 0.0 of its potential returns per unit of risk. Xerox Corp is currently generating about -0.04 per unit of risk. If you would invest 2,899 in JinkoSolar Holding on August 24, 2024 and sell it today you would lose (732.00) from holding JinkoSolar Holding or give up 25.25% 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. Xerox Corp
Performance |
| Timeline |
| JinkoSolar Holding |
| Xerox Corp |
JinkoSolar Holding and Xerox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Xerox Corp
The main advantage of trading using opposite JinkoSolar Holding and Xerox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Xerox Corp 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 Xerox Corp will offset losses from the drop in Xerox Corp's long position.| JinkoSolar Holding vs. Small Cap Core | JinkoSolar Holding vs. Freedom Holding Corp | JinkoSolar Holding vs. Gfl Environmental Holdings | JinkoSolar Holding vs. Growth Fund Of |
| Xerox Corp vs. ExlService Holdings | Xerox Corp vs. CSP Inc | Xerox Corp vs. ASGN Inc | Xerox Corp vs. Jack Henry Associates |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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