Correlation Between ZTO Express and PUBLIC STORAGE
Can any of the company-specific risk be diversified away by investing in both ZTO Express and PUBLIC STORAGE 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 PUBLIC STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and PUBLIC STORAGE PRFO, you can compare the effects of market volatilities on ZTO Express and PUBLIC STORAGE 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 PUBLIC STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and PUBLIC STORAGE.
Diversification Opportunities for ZTO Express and PUBLIC STORAGE
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZTO and PUBLIC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and PUBLIC STORAGE PRFO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUBLIC STORAGE PRFO 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 PUBLIC STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUBLIC STORAGE PRFO has no effect on the direction of ZTO Express i.e., ZTO Express and PUBLIC STORAGE go up and down completely randomly.
Pair Corralation between ZTO Express and PUBLIC STORAGE
Assuming the 90 days trading horizon ZTO Express is expected to under-perform the PUBLIC STORAGE. In addition to that, ZTO Express is 1.5 times more volatile than PUBLIC STORAGE PRFO. It trades about -0.32 of its total potential returns per unit of risk. PUBLIC STORAGE PRFO is currently generating about 0.01 per unit of volatility. If you would invest 1,650 in PUBLIC STORAGE PRFO on September 1, 2024 and sell it today you would earn a total of 0.00 from holding PUBLIC STORAGE PRFO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZTO Express vs. PUBLIC STORAGE PRFO
Performance |
| Timeline |
| ZTO Express |
| PUBLIC STORAGE PRFO |
ZTO Express and PUBLIC STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and PUBLIC STORAGE
The main advantage of trading using opposite ZTO Express and PUBLIC STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, PUBLIC STORAGE 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 PUBLIC STORAGE will offset losses from the drop in PUBLIC STORAGE'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 |
| PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Superior Plus Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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