Correlation Between JinkoSolar Holding and SolarEdge Technologies
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and SolarEdge Technologies 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 SolarEdge Technologies 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 SolarEdge Technologies, you can compare the effects of market volatilities on JinkoSolar Holding and SolarEdge Technologies 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 SolarEdge Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and SolarEdge Technologies.
Diversification Opportunities for JinkoSolar Holding and SolarEdge Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JinkoSolar and SolarEdge is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and SolarEdge Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarEdge Technologies 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 SolarEdge Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarEdge Technologies has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and SolarEdge Technologies go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and SolarEdge Technologies
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to under-perform the SolarEdge Technologies. But the stock apears to be less risky and, when comparing its historical volatility, JinkoSolar Holding Co is 1.79 times less risky than SolarEdge Technologies. The stock trades about -0.29 of its potential returns per unit of risk. The SolarEdge Technologies is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,450 in SolarEdge Technologies on November 2, 2024 and sell it today you would lose (200.00) from holding SolarEdge Technologies or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. SolarEdge Technologies
Performance |
| Timeline |
| JinkoSolar Holding |
| SolarEdge Technologies |
JinkoSolar Holding and SolarEdge Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and SolarEdge Technologies
The main advantage of trading using opposite JinkoSolar Holding and SolarEdge Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, SolarEdge Technologies 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 SolarEdge Technologies will offset losses from the drop in SolarEdge Technologies' long position.| JinkoSolar Holding vs. VULCAN MATERIALS | JinkoSolar Holding vs. Grand Canyon Education | JinkoSolar Holding vs. Rayonier Advanced Materials | JinkoSolar Holding vs. DeVry Education Group |
| SolarEdge Technologies vs. SIDETRADE EO 1 | SolarEdge Technologies vs. TRADELINK ELECTRON | SolarEdge Technologies vs. CANON MARKETING JP | SolarEdge Technologies vs. JD SPORTS FASH |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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