Correlation Between ZTO Express and CH Robinson

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

By analyzing existing cross correlation between ZTO Express and CH Robinson Worldwide, you can compare the effects of market volatilities on ZTO Express and CH Robinson 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 CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZTO Express and CH Robinson.

Diversification Opportunities for ZTO Express and CH Robinson

0.37

Correlation Coefficient

ZTO Express  CH Robinson

Weak diversification

The 3 months correlation between ZTO and CHRW is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ZTO Express and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide 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 CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of ZTO Express i.e., ZTO Express and CH Robinson go up and down completely randomly.

Pair Corralation between ZTO Express and CH Robinson

Considering the 90-day investment horizon ZTO Express is expected to generate 3.12 times less return on investment than CH Robinson. But when comparing it to its historical volatility, ZTO Express is 1.2 times less risky than CH Robinson. It trades about 0.06 of its potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  8,936  in CH Robinson Worldwide on May 4, 2025 and sell it today you would earn a total of  2,450  from holding CH Robinson Worldwide or generate 27.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ZTO Express  vs.  CH Robinson Worldwide

ZTO Express

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZTO Express are ranked lower than 4 (%) 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.

CH Robinson Worldwide

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CH Robinson Worldwide are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, CH Robinson showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ZTO Express and CH Robinson

The main advantage of trading using opposite ZTO Express and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZTO Express position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.

The idea behind ZTO Express and CH Robinson Worldwide 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.