Correlation Between JinkoSolar Holding and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Xinyi Solar 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 JinkoSolar Holding and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding Co and Xinyi Solar Holdings, you can compare the effects of market volatilities on JinkoSolar Holding and Xinyi Solar 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 JinkoSolar Holding with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Xinyi Solar.
Diversification Opportunities for JinkoSolar Holding and Xinyi Solar
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JinkoSolar and Xinyi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and Xinyi Solar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Solar Holdings and JinkoSolar Holding 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 JinkoSolar Holding Co are associated (or correlated) with Xinyi Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Solar Holdings has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Xinyi Solar go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Xinyi Solar
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to under-perform the Xinyi Solar. But the stock apears to be less risky and, when comparing its historical volatility, JinkoSolar Holding Co is 1.12 times less risky than Xinyi Solar. The stock trades about -0.01 of its potential returns per unit of risk. The Xinyi Solar Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Xinyi Solar Holdings on September 2, 2024 and sell it today you would lose (7.00) from holding Xinyi Solar Holdings or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. Xinyi Solar Holdings
Performance |
| Timeline |
| JinkoSolar Holding |
| Xinyi Solar Holdings |
JinkoSolar Holding and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Xinyi Solar
The main advantage of trading using opposite JinkoSolar Holding and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Xinyi Solar 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 Xinyi Solar will offset losses from the drop in Xinyi Solar's long position.| JinkoSolar Holding vs. Ming Le Sports | JinkoSolar Holding vs. Playa Hotels Resorts | JinkoSolar Holding vs. Perseus Mining Limited | JinkoSolar Holding vs. PLAYTECH |
| Xinyi Solar vs. Superior Plus Corp | Xinyi Solar vs. NMI Holdings | Xinyi Solar vs. Origin Agritech | Xinyi Solar vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |