Correlation Between CHEMICAL INDUSTRIES and ZTO EXPRESS
Can any of the company-specific risk be diversified away by investing in both CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES and ZTO EXPRESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHEMICAL INDUSTRIES and ZTO EXPRESS, you can compare the effects of market volatilities on CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES with a short position of ZTO EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEMICAL INDUSTRIES and ZTO EXPRESS.
Diversification Opportunities for CHEMICAL INDUSTRIES and ZTO EXPRESS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHEMICAL and ZTO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHEMICAL INDUSTRIES and ZTO EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO EXPRESS and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES i.e., CHEMICAL INDUSTRIES and ZTO EXPRESS go up and down completely randomly.
Pair Corralation between CHEMICAL INDUSTRIES and ZTO EXPRESS
If you would invest 43.00 in CHEMICAL INDUSTRIES on October 25, 2024 and sell it today you would earn a total of 0.00 from holding CHEMICAL INDUSTRIES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHEMICAL INDUSTRIES vs. ZTO EXPRESS
Performance |
| Timeline |
| CHEMICAL INDUSTRIES |
| ZTO EXPRESS |
CHEMICAL INDUSTRIES and ZTO EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEMICAL INDUSTRIES and ZTO EXPRESS
The main advantage of trading using opposite CHEMICAL INDUSTRIES and ZTO EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEMICAL INDUSTRIES 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's long position.| CHEMICAL INDUSTRIES vs. Apple Inc | CHEMICAL INDUSTRIES vs. Apple Inc | CHEMICAL INDUSTRIES vs. Apple Inc | CHEMICAL INDUSTRIES vs. Apple Inc |
| ZTO EXPRESS vs. PROSIEBENSAT1 MEDIADR4 | ZTO EXPRESS vs. PENN Entertainment | ZTO EXPRESS vs. VIVA WINE GROUP | ZTO EXPRESS vs. Flutter Entertainment PLC |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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