Correlation Between BioLife Solutions and ZTO Express

Can any of the company-specific risk be diversified away by investing in both BioLife Solutions 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 BioLife Solutions and ZTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioLife Solutions and ZTO Express, you can compare the effects of market volatilities on BioLife Solutions 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 BioLife Solutions with a short position of ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLife Solutions and ZTO Express.

Diversification Opportunities for BioLife Solutions and ZTO Express

-0.15

Correlation Coefficient

BioLife Solutions  ZTO Express

Good diversification

The 3 months correlation between BioLife and ZTO is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Solutions and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express and BioLife Solutions 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 BioLife Solutions 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 BioLife Solutions i.e., BioLife Solutions and ZTO Express go up and down completely randomly.

Pair Corralation between BioLife Solutions and ZTO Express

Given the investment horizon of 90 days BioLife Solutions is expected to generate 4.78 times less return on investment than ZTO Express. In addition to that, BioLife Solutions is 1.29 times more volatile than ZTO Express. It trades about 0.01 of its total potential returns per unit of risk. ZTO Express is currently generating about 0.08 per unit of volatility. If you would invest  1,847  in ZTO Express on May 13, 2025 and sell it today you would earn a total of  211.00  from holding ZTO Express or generate 11.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BioLife Solutions  vs.  ZTO Express

BioLife Solutions

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in BioLife Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BioLife Solutions is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ZTO Express

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ZTO Express are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, ZTO Express may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with BioLife Solutions and ZTO Express

The main advantage of trading using opposite BioLife Solutions and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLife Solutions 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' long position.

The idea behind BioLife Solutions and ZTO Express 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.