Correlation Between ZTO Express and Superior Plus
Can any of the company-specific risk be diversified away by investing in both ZTO Express and Superior Plus 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 ZTO Express and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and Superior Plus Corp, you can compare the effects of market volatilities on ZTO Express and Superior Plus 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 ZTO Express with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and Superior Plus.
Diversification Opportunities for ZTO Express and Superior Plus
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ZTO and Superior is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and ZTO Express 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 ZTO Express are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of ZTO Express i.e., ZTO Express and Superior Plus go up and down completely randomly.
Pair Corralation between ZTO Express and Superior Plus
Assuming the 90 days trading horizon ZTO Express is expected to generate 1.04 times more return on investment than Superior Plus. However, ZTO Express is 1.04 times more volatile than Superior Plus Corp. It trades about -0.02 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.04 per unit of risk. If you would invest 2,185 in ZTO Express on August 29, 2024 and sell it today you would lose (415.00) from holding ZTO Express or give up 18.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZTO Express vs. Superior Plus Corp
Performance |
| Timeline |
| ZTO Express |
| Superior Plus Corp |
ZTO Express and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and Superior Plus
The main advantage of trading using opposite ZTO Express and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| ZTO Express vs. PUBLIC STORAGE PRFO | ZTO Express vs. National Storage Affiliates | ZTO Express vs. MGIC INVESTMENT | ZTO Express vs. PennantPark Investment |
| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |