Correlation Between ZTO Express and Bollor SE
Can any of the company-specific risk be diversified away by investing in both ZTO Express and Bollor SE 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 Bollor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and Bollor SE, you can compare the effects of market volatilities on ZTO Express and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and Bollor SE.
Diversification Opportunities for ZTO Express and Bollor SE
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ZTO and Bollor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of ZTO Express i.e., ZTO Express and Bollor SE go up and down completely randomly.
Pair Corralation between ZTO Express and Bollor SE
Assuming the 90 days trading horizon ZTO Express is expected to under-perform the Bollor SE. In addition to that, ZTO Express is 1.54 times more volatile than Bollor SE. It trades about -0.05 of its total potential returns per unit of risk. Bollor SE is currently generating about -0.02 per unit of volatility. If you would invest 616.00 in Bollor SE on September 1, 2024 and sell it today you would lose (28.00) from holding Bollor SE or give up 4.55% 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. Bollor SE
Performance |
| Timeline |
| ZTO Express |
| Bollor SE |
ZTO Express and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and Bollor SE
The main advantage of trading using opposite ZTO Express and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| ZTO Express vs. Pure Storage | ZTO Express vs. Plastic Omnium | ZTO Express vs. Datang International Power | ZTO Express vs. Compagnie Plastic Omnium |
| Bollor SE vs. MTI WIRELESS EDGE | Bollor SE vs. Caltagirone SpA | Bollor SE vs. BlueScope Steel Limited | Bollor SE vs. DFS Furniture 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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