Correlation Between Kaufman Broad and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both Kaufman Broad and JinkoSolar Holding 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 Kaufman Broad and JinkoSolar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Broad SA and JinkoSolar Holding Co, you can compare the effects of market volatilities on Kaufman Broad and JinkoSolar Holding 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 Kaufman Broad with a short position of JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Broad and JinkoSolar Holding.
Diversification Opportunities for Kaufman Broad and JinkoSolar Holding
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kaufman and JinkoSolar is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding and Kaufman Broad 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 Kaufman Broad SA are associated (or correlated) with JinkoSolar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JinkoSolar Holding has no effect on the direction of Kaufman Broad i.e., Kaufman Broad and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between Kaufman Broad and JinkoSolar Holding
Assuming the 90 days horizon Kaufman Broad is expected to generate 1.19 times less return on investment than JinkoSolar Holding. But when comparing it to its historical volatility, Kaufman Broad SA is 2.45 times less risky than JinkoSolar Holding. It trades about 0.11 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,055 in JinkoSolar Holding Co on September 3, 2025 and sell it today you would earn a total of 185.00 from holding JinkoSolar Holding Co or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Broad SA vs. JinkoSolar Holding Co
Performance |
| Timeline |
| Kaufman Broad SA |
| JinkoSolar Holding |
Kaufman Broad and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Broad and JinkoSolar Holding
The main advantage of trading using opposite Kaufman Broad and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad position performs unexpectedly, JinkoSolar Holding 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 JinkoSolar Holding will offset losses from the drop in JinkoSolar Holding's long position.| Kaufman Broad vs. Salesforce | Kaufman Broad vs. EBRO FOODS | Kaufman Broad vs. FLOW TRADERS LTD | Kaufman Broad vs. HAPPY BELLY FOOD |
| JinkoSolar Holding vs. TRADEDOUBLER AB SK | JinkoSolar Holding vs. CARSALESCOM | JinkoSolar Holding vs. YATRA ONLINE DL 0001 | JinkoSolar Holding vs. TRADEGATE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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