Correlation Between JinkoSolar Holding and Nel ASA
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Nel ASA 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 Nel ASA 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 Nel ASA, you can compare the effects of market volatilities on JinkoSolar Holding and Nel ASA 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 Nel ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Nel ASA.
Diversification Opportunities for JinkoSolar Holding and Nel ASA
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JinkoSolar and Nel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and Nel ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nel ASA 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 Nel ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nel ASA has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Nel ASA go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Nel ASA
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to generate 1.36 times more return on investment than Nel ASA. However, JinkoSolar Holding is 1.36 times more volatile than Nel ASA. It trades about 0.06 of its potential returns per unit of risk. Nel ASA is currently generating about -0.36 per unit of risk. If you would invest 1,970 in JinkoSolar Holding Co on August 25, 2024 and sell it today you would earn a total of 75.00 from holding JinkoSolar Holding Co or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. Nel ASA
Performance |
| Timeline |
| JinkoSolar Holding |
| Nel ASA |
JinkoSolar Holding and Nel ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Nel ASA
The main advantage of trading using opposite JinkoSolar Holding and Nel ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Nel ASA 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 Nel ASA will offset losses from the drop in Nel ASA's long position.| JinkoSolar Holding vs. Computer And Technologies | JinkoSolar Holding vs. Universal Display | JinkoSolar Holding vs. BJs Restaurants | JinkoSolar Holding vs. Iridium Communications |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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