Correlation Between JinkoSolar Holding and INDOFOOD AGRI
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and INDOFOOD AGRI 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 INDOFOOD AGRI 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 INDOFOOD AGRI RES, you can compare the effects of market volatilities on JinkoSolar Holding and INDOFOOD AGRI 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 INDOFOOD AGRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and INDOFOOD AGRI.
Diversification Opportunities for JinkoSolar Holding and INDOFOOD AGRI
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between JinkoSolar and INDOFOOD is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and INDOFOOD AGRI RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDOFOOD AGRI RES 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 INDOFOOD AGRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDOFOOD AGRI RES has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and INDOFOOD AGRI go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and INDOFOOD AGRI
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to under-perform the INDOFOOD AGRI. In addition to that, JinkoSolar Holding is 2.3 times more volatile than INDOFOOD AGRI RES. It trades about -0.08 of its total potential returns per unit of risk. INDOFOOD AGRI RES is currently generating about 0.01 per unit of volatility. If you would invest 22.00 in INDOFOOD AGRI RES on October 10, 2024 and sell it today you would earn a total of 0.00 from holding INDOFOOD AGRI RES or generate 0.0% 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. INDOFOOD AGRI RES
Performance |
| Timeline |
| JinkoSolar Holding |
| INDOFOOD AGRI RES |
JinkoSolar Holding and INDOFOOD AGRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and INDOFOOD AGRI
The main advantage of trading using opposite JinkoSolar Holding and INDOFOOD AGRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, INDOFOOD AGRI 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 INDOFOOD AGRI will offset losses from the drop in INDOFOOD AGRI's long position.| JinkoSolar Holding vs. Rocket Internet SE | JinkoSolar Holding vs. Japan Tobacco | JinkoSolar Holding vs. NORTHEAST UTILITIES | JinkoSolar Holding vs. Liberty Broadband |
| INDOFOOD AGRI vs. PACIFIC ONLINE | INDOFOOD AGRI vs. BJs Restaurants | INDOFOOD AGRI vs. SYSTEMAIR AB | INDOFOOD AGRI vs. ETFS Coffee ETC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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