Correlation Between Jayud Global and ZTO Express

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Can any of the company-specific risk be diversified away by investing in both Jayud Global 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 Jayud Global and ZTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayud Global Logistics and ZTO Express, you can compare the effects of market volatilities on Jayud Global 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 Jayud Global with a short position of ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and ZTO Express.

Diversification Opportunities for Jayud Global and ZTO Express

JayudZTODiversified AwayJayudZTODiversified Away100%
-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between Jayud and ZTO is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express and Jayud Global 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 Jayud Global Logistics 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 Jayud Global i.e., Jayud Global and ZTO Express go up and down completely randomly.

Pair Corralation between Jayud Global and ZTO Express

Considering the 90-day investment horizon Jayud Global Logistics is expected to generate 3.36 times more return on investment than ZTO Express. However, Jayud Global is 3.36 times more volatile than ZTO Express. It trades about 0.13 of its potential returns per unit of risk. ZTO Express is currently generating about 0.25 per unit of risk. If you would invest  352.00  in Jayud Global Logistics on November 23, 2024 and sell it today you would earn a total of  51.00  from holding Jayud Global Logistics or generate 14.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jayud Global Logistics  vs.  ZTO Express

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0100200300
JavaScript chart by amCharts 3.21.15JYD ZTO
       Timeline  
Jayud Global Logistics 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.522.533.544.55
ZTO Express 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ZTO Express are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, ZTO Express may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1818.51919.52020.521

Jayud Global and ZTO Express Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-45.11-33.79-22.46-11.140.2112.625.2137.8150.42 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15JYD ZTO
       Returns  

Pair Trading with Jayud Global and ZTO Express

The main advantage of trading using opposite Jayud Global and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayud Global 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.
The idea behind Jayud Global Logistics and ZTO Express pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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