Correlation Between JinkoSolar Holding and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both JinkoSolar Holding and Xinyi 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 Xinyi Solar 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 Xinyi Solar Holdings, you can compare the effects of market volatilities on JinkoSolar Holding and Xinyi 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 Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of JinkoSolar Holding and Xinyi Solar.
Diversification Opportunities for JinkoSolar Holding and Xinyi Solar
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JinkoSolar and Xinyi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding JinkoSolar Holding Co and Xinyi Solar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Solar Holdings 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 Xinyi Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Solar Holdings has no effect on the direction of JinkoSolar Holding i.e., JinkoSolar Holding and Xinyi Solar go up and down completely randomly.
Pair Corralation between JinkoSolar Holding and Xinyi Solar
Assuming the 90 days trading horizon JinkoSolar Holding Co is expected to generate 0.96 times more return on investment than Xinyi Solar. However, JinkoSolar Holding Co is 1.04 times less risky than Xinyi Solar. It trades about 0.06 of its potential returns per unit of risk. Xinyi Solar Holdings is currently generating about 0.01 per unit of risk. If you would invest 2,035 in JinkoSolar Holding Co on September 2, 2025 and sell it today you would earn a total of 230.00 from holding JinkoSolar Holding Co or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JinkoSolar Holding Co vs. Xinyi Solar Holdings
Performance |
| Timeline |
| JinkoSolar Holding |
| Xinyi Solar Holdings |
JinkoSolar Holding and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JinkoSolar Holding and Xinyi Solar
The main advantage of trading using opposite JinkoSolar Holding and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JinkoSolar Holding position performs unexpectedly, Xinyi 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 Xinyi Solar will offset losses from the drop in Xinyi Solar's long position.| JinkoSolar Holding vs. Broadridge Financial Solutions | JinkoSolar Holding vs. Texas Roadhouse | JinkoSolar Holding vs. TEXAS ROADHOUSE | JinkoSolar Holding vs. Kaufman Broad SA |
| Xinyi Solar vs. First Solar | Xinyi Solar vs. SolarEdge Technologies | Xinyi Solar vs. SMA SOLAR T | Xinyi Solar vs. SMA Solar Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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