Correlation Between STGEORGE MINING and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and JinkoSolar Holding Co, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and JinkoSolar Holding.
Diversification Opportunities for STGEORGE MINING and JinkoSolar Holding
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between STGEORGE and JinkoSolar is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between STGEORGE MINING and JinkoSolar Holding
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 3.32 times more return on investment than JinkoSolar Holding. However, STGEORGE MINING is 3.32 times more volatile than JinkoSolar Holding Co. It trades about 0.05 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about 0.0 per unit of risk. If you would invest 1.60 in STGEORGE MINING LTD on December 11, 2024 and sell it today you would lose (0.75) from holding STGEORGE MINING LTD or give up 46.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. JinkoSolar Holding Co
Performance |
| Timeline |
| STGEORGE MINING LTD |
| JinkoSolar Holding |
STGEORGE MINING and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and JinkoSolar Holding
The main advantage of trading using opposite STGEORGE MINING and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. BHP Group Limited | ||
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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