Correlation Between DAX Index and ZTO Express
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By analyzing existing cross correlation between DAX Index and ZTO Express, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ZTO Express.
Diversification Opportunities for DAX Index and ZTO Express
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and ZTO is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and ZTO Express go up and down completely randomly.
Pair Corralation between DAX Index and ZTO Express
Assuming the 90 days trading horizon DAX Index is expected to generate 0.43 times more return on investment than ZTO Express. However, DAX Index is 2.32 times less risky than ZTO Express. It trades about 0.14 of its potential returns per unit of risk. ZTO Express is currently generating about -0.32 per unit of risk. If you would invest 1,907,754 in DAX Index on September 1, 2024 and sell it today you would earn a total of 54,891 from holding DAX Index or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. ZTO Express
Performance |
| Timeline |
DAX Index and ZTO Express Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ZTO Express
Pair trading matchups for ZTO Express
Pair Trading with DAX Index and ZTO Express
The main advantage of trading using opposite DAX Index and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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