Correlation Between ZTO Express and BioLife Solutions
Can any of the company-specific risk be diversified away by investing in both ZTO Express and BioLife Solutions 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 BioLife Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZTO Express and BioLife Solutions, you can compare the effects of market volatilities on ZTO Express and BioLife Solutions 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 BioLife Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and BioLife Solutions.
Diversification Opportunities for ZTO Express and BioLife Solutions
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ZTO and BioLife is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions 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 BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of ZTO Express i.e., ZTO Express and BioLife Solutions go up and down completely randomly.
Pair Corralation between ZTO Express and BioLife Solutions
Considering the 90-day investment horizon ZTO Express is expected to generate 2.04 times less return on investment than BioLife Solutions. But when comparing it to its historical volatility, ZTO Express is 1.5 times less risky than BioLife Solutions. It trades about 0.06 of its potential returns per unit of risk. BioLife Solutions is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,203 in BioLife Solutions on June 4, 2025 and sell it today you would earn a total of 302.00 from holding BioLife Solutions or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
ZTO Express vs. BioLife Solutions
Performance |
| Timeline |
| ZTO Express |
| BioLife Solutions |
ZTO Express and BioLife Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZTO Express and BioLife Solutions
The main advantage of trading using opposite ZTO Express and BioLife Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, BioLife Solutions 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 BioLife Solutions will offset losses from the drop in BioLife Solutions' long position.| ZTO Express vs. Forward Air | ZTO Express vs. Landstar System | ZTO Express vs. JB Hunt Transport | ZTO Express vs. Expeditors International of |
| BioLife Solutions vs. AngioDynamics | BioLife Solutions vs. AptarGroup | BioLife Solutions vs. AtriCure | BioLife Solutions vs. Axogen Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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