Correlation Between Apple and ZTO EXPRESS
Can any of the company-specific risk be diversified away by investing in both Apple and ZTO EXPRESS 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 Apple and ZTO EXPRESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and ZTO EXPRESS, you can compare the effects of market volatilities on Apple and ZTO EXPRESS 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 Apple with a short position of ZTO EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and ZTO EXPRESS.
Diversification Opportunities for Apple and ZTO EXPRESS
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and ZTO is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ZTO EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO EXPRESS and Apple 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 Apple Inc are associated (or correlated) with ZTO EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTO EXPRESS has no effect on the direction of Apple i.e., Apple and ZTO EXPRESS go up and down completely randomly.
Pair Corralation between Apple and ZTO EXPRESS
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.56 times more return on investment than ZTO EXPRESS. However, Apple Inc is 1.8 times less risky than ZTO EXPRESS. It trades about 0.68 of its potential returns per unit of risk. ZTO EXPRESS is currently generating about 0.12 per unit of risk. If you would invest 21,940 in Apple Inc on September 25, 2024 and sell it today you would earn a total of 2,445 from holding Apple Inc or generate 11.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc vs. ZTO EXPRESS
Performance |
Timeline |
Apple Inc |
ZTO EXPRESS |
Apple and ZTO EXPRESS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and ZTO EXPRESS
The main advantage of trading using opposite Apple and ZTO EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, ZTO EXPRESS 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 ZTO EXPRESS will offset losses from the drop in ZTO EXPRESS's long position.Apple vs. LG Display Co | Apple vs. Apollo Investment Corp | Apple vs. Universal Display | Apple vs. TRAVEL LEISURE DL 01 |
ZTO EXPRESS vs. Kuehne Nagel International | ZTO EXPRESS vs. NIKKON HOLDINGS TD | ZTO EXPRESS vs. SENKO GROUP HOLDINGS | ZTO EXPRESS vs. NTG Nordic Transport |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |