Correlation Between APT Satellite and Airtel Africa
Can any of the company-specific risk be diversified away by investing in both APT Satellite and Airtel Africa 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 APT Satellite and Airtel Africa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APT Satellite Holdings and Airtel Africa Plc, you can compare the effects of market volatilities on APT Satellite and Airtel Africa 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 APT Satellite with a short position of Airtel Africa. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Satellite and Airtel Africa.
Diversification Opportunities for APT Satellite and Airtel Africa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APT and Airtel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding APT Satellite Holdings and Airtel Africa Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airtel Africa Plc and APT Satellite 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 APT Satellite Holdings are associated (or correlated) with Airtel Africa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airtel Africa Plc has no effect on the direction of APT Satellite i.e., APT Satellite and Airtel Africa go up and down completely randomly.
Pair Corralation between APT Satellite and Airtel Africa
If you would invest 143.00 in Airtel Africa Plc on October 26, 2024 and sell it today you would earn a total of 7.00 from holding Airtel Africa Plc or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
APT Satellite Holdings vs. Airtel Africa Plc
Performance |
| Timeline |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Airtel Africa Plc |
APT Satellite and Airtel Africa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Satellite and Airtel Africa
The main advantage of trading using opposite APT Satellite and Airtel Africa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Satellite position performs unexpectedly, Airtel Africa 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 Airtel Africa will offset losses from the drop in Airtel Africa's long position.| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
| Airtel Africa vs. BCE Inc | Airtel Africa vs. Axiologix | Airtel Africa vs. Advanced Info Service | Airtel Africa vs. American Nortel Communications |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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