Correlation Between JinkoSolar Holding and PENN Entertainment
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and PENN Entertainment 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 PENN Entertainment 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 PENN Entertainment, you can compare the effects of market volatilities on JinkoSolar Holding and PENN Entertainment 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 PENN Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and PENN Entertainment.
Diversification Opportunities for JinkoSolar Holding and PENN Entertainment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JinkoSolar and PENN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and PENN Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment 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 PENN Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and PENN Entertainment go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and PENN Entertainment
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to generate 1.3 times more return on investment than PENN Entertainment. However, JinkoSolar Holding is 1.3 times more volatile than PENN Entertainment. It trades about -0.01 of its potential returns per unit of risk. PENN Entertainment is currently generating about -0.02 per unit of risk. If you would invest 3,871 in JinkoSolar Holding Co on December 12, 2024 and sell it today you would lose (1,885) from holding JinkoSolar Holding Co or give up 48.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. PENN Entertainment
Performance |
| Timeline |
| JinkoSolar Holding |
| PENN Entertainment |
JinkoSolar Holding and PENN Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and PENN Entertainment
The main advantage of trading using opposite JinkoSolar Holding and PENN Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, PENN Entertainment 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 PENN Entertainment will offset losses from the drop in PENN Entertainment's long position.| JinkoSolar Holding vs. Television Broadcasts Limited | ||
| JinkoSolar Holding vs. BII Railway Transportation | ||
| JinkoSolar Holding vs. CN DATANG C | ||
| JinkoSolar Holding vs. SAFEROADS HLDGS |
| PENN Entertainment vs. Lattice Semiconductor | ||
| PENN Entertainment vs. Hellenic Telecommunications Organization | ||
| PENN Entertainment vs. BE Semiconductor Industries | ||
| PENN Entertainment vs. FONIX MOBILE PLC |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |