Correlation Between SunPower and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both SunPower 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 SunPower and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunPower and JinkoSolar Holding, you can compare the effects of market volatilities on SunPower 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 SunPower with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunPower and JinkoSolar Holding.
Diversification Opportunities for SunPower and JinkoSolar Holding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunPower and JinkoSolar is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SunPower and JinkoSolar Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and SunPower 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 SunPower 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 SunPower i.e., SunPower and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between SunPower and JinkoSolar Holding
If you would invest (100.00) in SunPower on August 26, 2024 and sell it today you would earn a total of 100.00 from holding SunPower or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SunPower vs. JinkoSolar Holding
Performance |
| Timeline |
| SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JinkoSolar Holding |
SunPower and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunPower and JinkoSolar Holding
The main advantage of trading using opposite SunPower and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunPower 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.| SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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