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

0.22

Correlation Coefficient

BioLife Solutions  ZTO Express

Modest diversification

The 3 months correlation between BioLife and ZTO is 0.22. 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 under-perform the ZTO Express. In addition to that, BioLife Solutions is 1.39 times more volatile than ZTO Express. It trades about -0.05 of its total potential returns per unit of risk. ZTO Express is currently generating about 0.04 per unit of volatility. If you would invest  1,890  in ZTO Express on May 3, 2025 and sell it today you would earn a total of  79.00  from holding ZTO Express or generate 4.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

BioLife Solutions  vs.  ZTO Express

BioLife Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioLife Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

ZTO Express

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZTO Express are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, ZTO Express is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.