Correlation Between CH Robinson and ZTO Express
Can any of the company-specific risk be diversified away by investing in both CH Robinson 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 CH Robinson and ZTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CH Robinson Worldwide and ZTO Express, you can compare the effects of market volatilities on CH Robinson 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 CH Robinson with a short position of ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of CH Robinson and ZTO Express.
Diversification Opportunities for CH Robinson and ZTO Express
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CH1A and ZTO is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CH Robinson Worldwide and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express and CH Robinson 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 CH Robinson Worldwide 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 CH Robinson i.e., CH Robinson and ZTO Express go up and down completely randomly.
Pair Corralation between CH Robinson and ZTO Express
Assuming the 90 days trading horizon CH Robinson Worldwide is expected to generate 0.82 times more return on investment than ZTO Express. However, CH Robinson Worldwide is 1.22 times less risky than ZTO Express. It trades about 0.11 of its potential returns per unit of risk. ZTO Express is currently generating about -0.05 per unit of risk. If you would invest 7,787 in CH Robinson Worldwide on September 1, 2024 and sell it today you would earn a total of 2,063 from holding CH Robinson Worldwide or generate 26.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CH Robinson Worldwide vs. ZTO Express
Performance |
| Timeline |
| CH Robinson Worldwide |
| ZTO Express |
CH Robinson and ZTO Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CH Robinson and ZTO Express
The main advantage of trading using opposite CH Robinson and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CH Robinson 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.| CH Robinson vs. TITANIUM TRANSPORTGROUP | CH Robinson vs. CODERE ONLINE LUX | CH Robinson vs. PARKEN Sport Entertainment | CH Robinson vs. SPORT LISBOA E |
| ZTO Express vs. Pure Storage | ZTO Express vs. Plastic Omnium | ZTO Express vs. Datang International Power | ZTO Express vs. Compagnie Plastic Omnium |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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