Correlation Between JinkoSolar Holding and Rock Tech
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Rock Tech 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 Rock Tech 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 Rock Tech Lithium, you can compare the effects of market volatilities on JinkoSolar Holding and Rock Tech 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 Rock Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Rock Tech.
Diversification Opportunities for JinkoSolar Holding and Rock Tech
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between JinkoSolar and Rock is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and Rock Tech Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rock Tech Lithium 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 Rock Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rock Tech Lithium has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Rock Tech go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Rock Tech
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to generate 1.34 times more return on investment than Rock Tech. However, JinkoSolar Holding is 1.34 times more volatile than Rock Tech Lithium. It trades about -0.04 of its potential returns per unit of risk. Rock Tech Lithium is currently generating about -0.11 per unit of risk. If you would invest 2,545 in JinkoSolar Holding Co on September 5, 2024 and sell it today you would lose (170.00) from holding JinkoSolar Holding Co or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. Rock Tech Lithium
Performance |
| Timeline |
| JinkoSolar Holding |
| Rock Tech Lithium |
JinkoSolar Holding and Rock Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Rock Tech
The main advantage of trading using opposite JinkoSolar Holding and Rock Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Rock Tech 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 Rock Tech will offset losses from the drop in Rock Tech's long position.| JinkoSolar Holding vs. Superior Plus Corp | JinkoSolar Holding vs. NMI Holdings | JinkoSolar Holding vs. Origin Agritech | JinkoSolar Holding vs. SIVERS SEMICONDUCTORS AB |
| Rock Tech vs. American Eagle Outfitters | Rock Tech vs. The Trade Desk | Rock Tech vs. HomeToGo SE | Rock Tech vs. Fast Retailing Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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