Correlation Between Superior Plus and ZTO Express
Can any of the company-specific risk be diversified away by investing in both Superior Plus and ZTO Express 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 Superior Plus and ZTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and ZTO Express, you can compare the effects of market volatilities on Superior Plus and ZTO Express 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 Superior Plus with a short position of ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and ZTO Express.
Diversification Opportunities for Superior Plus and ZTO Express
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Superior and ZTO is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express and Superior Plus 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 Superior Plus Corp are associated (or correlated) with ZTO Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTO Express has no effect on the direction of Superior Plus i.e., Superior Plus and ZTO Express go up and down completely randomly.
Pair Corralation between Superior Plus and ZTO Express
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the ZTO Express. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.04 times less risky than ZTO Express. The stock trades about -0.04 of its potential returns per unit of risk. The ZTO Express is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,185 in ZTO Express on August 29, 2024 and sell it today you would lose (415.00) from holding ZTO Express or give up 18.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. ZTO Express
Performance |
| Timeline |
| Superior Plus Corp |
| ZTO Express |
Superior Plus and ZTO Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and ZTO Express
The main advantage of trading using opposite Superior Plus and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, ZTO Express 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 ZTO Express will offset losses from the drop in ZTO Express' long position.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| ZTO Express vs. PUBLIC STORAGE PRFO | ZTO Express vs. National Storage Affiliates | ZTO Express vs. MGIC INVESTMENT | ZTO Express vs. PennantPark Investment |
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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |