Correlation Between ZTO EXPRESS and Identiv
Can any of the company-specific risk be diversified away by investing in both ZTO EXPRESS and Identiv 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 Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO EXPRESS and Identiv, you can compare the effects of market volatilities on ZTO EXPRESS and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO EXPRESS and Identiv.
Diversification Opportunities for ZTO EXPRESS and Identiv
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZTO and Identiv is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ZTO EXPRESS and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of ZTO EXPRESS i.e., ZTO EXPRESS and Identiv go up and down completely randomly.
Pair Corralation between ZTO EXPRESS and Identiv
Assuming the 90 days trading horizon ZTO EXPRESS is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, ZTO EXPRESS is 2.26 times less risky than Identiv. The stock trades about -0.32 of its potential returns per unit of risk. The Identiv is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Identiv on September 5, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZTO EXPRESS vs. Identiv
Performance |
| Timeline |
| ZTO EXPRESS |
| Identiv |
ZTO EXPRESS and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO EXPRESS and Identiv
The main advantage of trading using opposite ZTO EXPRESS and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO EXPRESS position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| ZTO EXPRESS vs. Kuehne Nagel International | ZTO EXPRESS vs. Superior Plus Corp | ZTO EXPRESS vs. NMI Holdings | ZTO EXPRESS vs. Origin Agritech |
| Identiv vs. AECOM TECHNOLOGY | Identiv vs. Consolidated Communications Holdings | Identiv vs. Sunny Optical Technology | Identiv vs. NORTHEAST UTILITIES |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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