Correlation Between ZTO Express and Addentax Group
Can any of the company-specific risk be diversified away by investing in both ZTO Express and Addentax Group 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 Addentax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and Addentax Group Corp, you can compare the effects of market volatilities on ZTO Express and Addentax Group 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 Addentax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and Addentax Group.
Diversification Opportunities for ZTO Express and Addentax Group
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZTO and Addentax is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp 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 Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of ZTO Express i.e., ZTO Express and Addentax Group go up and down completely randomly.
Pair Corralation between ZTO Express and Addentax Group
Considering the 90-day investment horizon ZTO Express is expected to generate 0.41 times more return on investment than Addentax Group. However, ZTO Express is 2.42 times less risky than Addentax Group. It trades about 0.04 of its potential returns per unit of risk. Addentax Group Corp is currently generating about -0.07 per unit of risk. If you would invest 1,762 in ZTO Express on June 10, 2025 and sell it today you would earn a total of 72.00 from holding ZTO Express or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZTO Express vs. Addentax Group Corp
Performance |
| Timeline |
| ZTO Express |
| Addentax Group Corp |
ZTO Express and Addentax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and Addentax Group
The main advantage of trading using opposite ZTO Express and Addentax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, Addentax Group 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 Addentax Group will offset losses from the drop in Addentax Group's long position.| ZTO Express vs. Forward Air | ZTO Express vs. Landstar System | ZTO Express vs. JB Hunt Transport | ZTO Express vs. Expeditors International of |
| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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