Correlation Between Corporate Travel and ZhongAn Online

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Can any of the company-specific risk be diversified away by investing in both Corporate Travel and ZhongAn Online 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 Corporate Travel and ZhongAn Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and ZhongAn Online P, you can compare the effects of market volatilities on Corporate Travel and ZhongAn Online 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 Corporate Travel with a short position of ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and ZhongAn Online.

Diversification Opportunities for Corporate Travel and ZhongAn Online

CorporateZhongAnDiversified AwayCorporateZhongAnDiversified Away100%
-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between Corporate and ZhongAn is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of Corporate Travel i.e., Corporate Travel and ZhongAn Online go up and down completely randomly.

Pair Corralation between Corporate Travel and ZhongAn Online

Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 0.91 times more return on investment than ZhongAn Online. However, Corporate Travel Management is 1.1 times less risky than ZhongAn Online. It trades about 0.3 of its potential returns per unit of risk. ZhongAn Online P is currently generating about 0.06 per unit of risk. If you would invest  770.00  in Corporate Travel Management on October 31, 2024 and sell it today you would earn a total of  95.00  from holding Corporate Travel Management or generate 12.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Corporate Travel Management  vs.  ZhongAn Online P

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020
JavaScript chart by amCharts 3.21.151C6 1ZO
       Timeline  
Corporate Travel Man 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Corporate Travel Management are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Corporate Travel unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan77.588.5
ZhongAn Online P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ZhongAn Online P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.31.41.51.61.71.8

Corporate Travel and ZhongAn Online Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.51-5.62-3.74-1.85-0.03141.953.975.988.010.02 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.151C6 1ZO
       Returns  

Pair Trading with Corporate Travel and ZhongAn Online

The main advantage of trading using opposite Corporate Travel and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.
The idea behind Corporate Travel Management and ZhongAn Online P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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