Correlation Between NYSE Composite and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and JinkoSolar Holding, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and JinkoSolar Holding.
Diversification Opportunities for NYSE Composite and JinkoSolar Holding
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and JinkoSolar is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and JinkoSolar Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between NYSE Composite and JinkoSolar Holding
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the JinkoSolar Holding. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 3.66 times less risky than JinkoSolar Holding. The index trades about -0.1 of its potential returns per unit of risk. The JinkoSolar Holding is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,306 in JinkoSolar Holding on December 23, 2024 and sell it today you would lose (49.00) from holding JinkoSolar Holding or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. JinkoSolar Holding
Performance |
| Timeline |
NYSE Composite and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
JinkoSolar Holding
Pair trading matchups for JinkoSolar Holding
Pair Trading with NYSE Composite and JinkoSolar Holding
The main advantage of trading using opposite NYSE Composite and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. European Wax Center | NYSE Composite vs. Honest Company | NYSE Composite vs. Beauty Health Co | NYSE Composite vs. Estee Lauder Companies |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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