Correlation Between ZTO Express and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both ZTO Express and Deutsche Post 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 Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and Deutsche Post AG, you can compare the effects of market volatilities on ZTO Express and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and Deutsche Post.
Diversification Opportunities for ZTO Express and Deutsche Post
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZTO and Deutsche is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of ZTO Express i.e., ZTO Express and Deutsche Post go up and down completely randomly.
Pair Corralation between ZTO Express and Deutsche Post
Assuming the 90 days trading horizon ZTO Express is expected to under-perform the Deutsche Post. In addition to that, ZTO Express is 1.07 times more volatile than Deutsche Post AG. It trades about -0.01 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about 0.01 per unit of volatility. If you would invest 3,385 in Deutsche Post AG on August 30, 2024 and sell it today you would earn a total of 85.00 from holding Deutsche Post AG or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZTO Express vs. Deutsche Post AG
Performance |
| Timeline |
| ZTO Express |
| Deutsche Post AG |
ZTO Express and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and Deutsche Post
The main advantage of trading using opposite ZTO Express and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| ZTO Express vs. PUBLIC STORAGE PRFO | ZTO Express vs. National Storage Affiliates | ZTO Express vs. MGIC INVESTMENT | ZTO Express vs. PennantPark Investment |
| Deutsche Post vs. ZTO Express | Deutsche Post vs. Expeditors International of | Deutsche Post vs. Superior Plus Corp | Deutsche Post vs. Origin Agritech |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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