Correlation Between JinkoSolar Holding and CLOVER HEALTH
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and CLOVER HEALTH 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 CLOVER HEALTH 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 CLOVER HEALTH INV, you can compare the effects of market volatilities on JinkoSolar Holding and CLOVER HEALTH 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 CLOVER HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and CLOVER HEALTH.
Diversification Opportunities for JinkoSolar Holding and CLOVER HEALTH
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between JinkoSolar and CLOVER is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and CLOVER HEALTH INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLOVER HEALTH INV 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 CLOVER HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLOVER HEALTH INV has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and CLOVER HEALTH go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and CLOVER HEALTH
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to under-perform the CLOVER HEALTH. In addition to that, JinkoSolar Holding is 1.24 times more volatile than CLOVER HEALTH INV. It trades about -0.13 of its total potential returns per unit of risk. CLOVER HEALTH INV is currently generating about 0.07 per unit of volatility. If you would invest 311.00 in CLOVER HEALTH INV on October 10, 2024 and sell it today you would earn a total of 8.00 from holding CLOVER HEALTH INV or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. CLOVER HEALTH INV
Performance |
| Timeline |
| JinkoSolar Holding |
| CLOVER HEALTH INV |
JinkoSolar Holding and CLOVER HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and CLOVER HEALTH
The main advantage of trading using opposite JinkoSolar Holding and CLOVER HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, CLOVER HEALTH 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 CLOVER HEALTH will offset losses from the drop in CLOVER HEALTH's long position.| JinkoSolar Holding vs. INDOFOOD AGRI RES | JinkoSolar Holding vs. Automatic Data Processing | JinkoSolar Holding vs. TYSON FOODS A | JinkoSolar Holding vs. INFORMATION SVC GRP |
| CLOVER HEALTH vs. Superior Plus Corp | CLOVER HEALTH vs. NMI Holdings | CLOVER HEALTH vs. SIVERS SEMICONDUCTORS AB | CLOVER HEALTH vs. Talanx AG |
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 Stocks Directory module to find actively traded stocks across global markets.
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