Correlation Between Sunrun and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both Sunrun 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 Sunrun and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and JinkoSolar Holding, you can compare the effects of market volatilities on Sunrun 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 Sunrun with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and JinkoSolar Holding.
Diversification Opportunities for Sunrun and JinkoSolar Holding
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunrun and JinkoSolar is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and JinkoSolar Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and Sunrun 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 Sunrun Inc 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 Sunrun i.e., Sunrun and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between Sunrun and JinkoSolar Holding
Considering the 90-day investment horizon Sunrun Inc is expected to generate 1.57 times more return on investment than JinkoSolar Holding. However, Sunrun is 1.57 times more volatile than JinkoSolar Holding. It trades about -0.08 of its potential returns per unit of risk. JinkoSolar Holding is currently generating about -0.15 per unit of risk. If you would invest 1,443 in Sunrun Inc on August 28, 2024 and sell it today you would lose (291.00) from holding Sunrun Inc or give up 20.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrun Inc vs. JinkoSolar Holding
Performance |
| Timeline |
| Sunrun Inc |
| JinkoSolar Holding |
Sunrun and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and JinkoSolar Holding
The main advantage of trading using opposite Sunrun and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun 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.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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