Correlation Between Identiv and ZTO Express
Can any of the company-specific risk be diversified away by investing in both Identiv 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 Identiv and ZTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and ZTO Express, you can compare the effects of market volatilities on Identiv 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 Identiv with a short position of ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and ZTO Express.
Diversification Opportunities for Identiv and ZTO Express
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Identiv and ZTO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express and Identiv 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 Identiv 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 Identiv i.e., Identiv and ZTO Express go up and down completely randomly.
Pair Corralation between Identiv and ZTO Express
Assuming the 90 days trading horizon Identiv is expected to generate 1.52 times more return on investment than ZTO Express. However, Identiv is 1.52 times more volatile than ZTO Express. It trades about 0.19 of its potential returns per unit of risk. ZTO Express is currently generating about -0.32 per unit of risk. If you would invest 320.00 in Identiv on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Identiv or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Identiv vs. ZTO Express
Performance |
| Timeline |
| Identiv |
| ZTO Express |
Identiv and ZTO Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and ZTO Express
The main advantage of trading using opposite Identiv and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv 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.| Identiv vs. ANTA SPORTS PRODUCT | Identiv vs. PLAYTIKA HOLDING DL 01 | Identiv vs. CNVISION MEDIA | Identiv vs. PARKEN Sport Entertainment |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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