Correlation Between ZTO Express and Wallenius Wilhelmsen
Can any of the company-specific risk be diversified away by investing in both ZTO Express and Wallenius Wilhelmsen 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 Wallenius Wilhelmsen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and Wallenius Wilhelmsen ASA, you can compare the effects of market volatilities on ZTO Express and Wallenius Wilhelmsen 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 Wallenius Wilhelmsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and Wallenius Wilhelmsen.
Diversification Opportunities for ZTO Express and Wallenius Wilhelmsen
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZTO and Wallenius is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and Wallenius Wilhelmsen ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallenius Wilhelmsen ASA 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 Wallenius Wilhelmsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallenius Wilhelmsen ASA has no effect on the direction of ZTO Express i.e., ZTO Express and Wallenius Wilhelmsen go up and down completely randomly.
Pair Corralation between ZTO Express and Wallenius Wilhelmsen
Assuming the 90 days trading horizon ZTO Express is expected to under-perform the Wallenius Wilhelmsen. But the stock apears to be less risky and, when comparing its historical volatility, ZTO Express is 1.16 times less risky than Wallenius Wilhelmsen. The stock trades about -0.04 of its potential returns per unit of risk. The Wallenius Wilhelmsen ASA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 732.00 in Wallenius Wilhelmsen ASA on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Wallenius Wilhelmsen ASA or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZTO Express vs. Wallenius Wilhelmsen ASA
Performance |
| Timeline |
| ZTO Express |
| Wallenius Wilhelmsen ASA |
ZTO Express and Wallenius Wilhelmsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and Wallenius Wilhelmsen
The main advantage of trading using opposite ZTO Express and Wallenius Wilhelmsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, Wallenius Wilhelmsen 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 Wallenius Wilhelmsen will offset losses from the drop in Wallenius Wilhelmsen's long position.| ZTO Express vs. FedEx | ZTO Express vs. Bollor SE | ZTO Express vs. Superior Plus Corp | ZTO Express vs. Origin Agritech |
| Wallenius Wilhelmsen vs. Air Transport Services | Wallenius Wilhelmsen vs. MIRAMAR HOTEL INV | Wallenius Wilhelmsen vs. JD SPORTS FASH | Wallenius Wilhelmsen vs. MELIA HOTELS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |