Correlation Between JinkoSolar Holding and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Maxeon Solar 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 Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JinkoSolar Holding and Maxeon Solar Technologies, you can compare the effects of market volatilities on JinkoSolar Holding and Maxeon Solar 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 Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Maxeon Solar.
Diversification Opportunities for JinkoSolar Holding and Maxeon Solar
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JinkoSolar and Maxeon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies 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 are associated (or correlated) with Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Maxeon Solar go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Maxeon Solar
Considering the 90-day investment horizon JinkoSolar Holding is expected to generate 1.87 times less return on investment than Maxeon Solar. But when comparing it to its historical volatility, JinkoSolar Holding is 3.39 times less risky than Maxeon Solar. It trades about 0.18 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Maxeon Solar Technologies on March 2, 2024 and sell it today you would earn a total of 9.00 from holding Maxeon Solar Technologies or generate 4.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JinkoSolar Holding vs. Maxeon Solar Technologies
Performance |
Timeline |
JinkoSolar Holding |
Maxeon Solar Technologies |
JinkoSolar Holding and Maxeon Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JinkoSolar Holding and Maxeon Solar
The main advantage of trading using opposite JinkoSolar Holding and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Maxeon Solar 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.JinkoSolar Holding vs. Ecopetrol SA ADR | JinkoSolar Holding vs. POSCO Holdings | JinkoSolar Holding vs. T Rowe Price | JinkoSolar Holding vs. Ep Emerging Markets |
Maxeon Solar vs. Ecopetrol SA ADR | Maxeon Solar vs. POSCO Holdings | Maxeon Solar vs. T Rowe Price | Maxeon Solar vs. Ep Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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