Correlation Between Nextracker and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both Nextracker and JinkoSolar Holding 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 Nextracker and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextracker Class A and JinkoSolar Holding, you can compare the effects of market volatilities on Nextracker and JinkoSolar Holding 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 Nextracker with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextracker and JinkoSolar Holding.
Diversification Opportunities for Nextracker and JinkoSolar Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextracker and JinkoSolar is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nextracker Class A and JinkoSolar Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and Nextracker 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 Nextracker Class A are associated (or correlated) with JinkoSolar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JinkoSolar Holding has no effect on the direction of Nextracker i.e., Nextracker and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between Nextracker and JinkoSolar Holding
Considering the 90-day investment horizon Nextracker Class A is expected to generate 1.21 times more return on investment than JinkoSolar Holding. However, Nextracker is 1.21 times more volatile than JinkoSolar Holding. It trades about 0.2 of its potential returns per unit of risk. JinkoSolar Holding is currently generating about 0.14 per unit of risk. If you would invest 4,067 in Nextracker Class A on November 28, 2024 and sell it today you would earn a total of 629.00 from holding Nextracker Class A or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextracker Class A vs. JinkoSolar Holding
Performance |
| Timeline |
| Nextracker Class A |
| JinkoSolar Holding |
Nextracker and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextracker and JinkoSolar Holding
The main advantage of trading using opposite Nextracker and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextracker position performs unexpectedly, JinkoSolar Holding 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 JinkoSolar Holding will offset losses from the drop in JinkoSolar Holding's long position.| Nextracker vs. National CineMedia | Nextracker vs. Highway Holdings Limited | Nextracker vs. Imax Corp | Nextracker vs. FMC Corporation |
| JinkoSolar Holding vs. First Solar | JinkoSolar Holding vs. SolarEdge Technologies | JinkoSolar Holding vs. Sunrun Inc | JinkoSolar Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |