Correlation Between APT Satellite and Proximus
Can any of the company-specific risk be diversified away by investing in both APT Satellite and Proximus 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 Proximus 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 Proximus NV ADR, you can compare the effects of market volatilities on APT Satellite and Proximus 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 Proximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Satellite and Proximus.
Diversification Opportunities for APT Satellite and Proximus
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APT and Proximus is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding APT Satellite Holdings and Proximus NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximus NV ADR 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 Proximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximus NV ADR has no effect on the direction of APT Satellite i.e., APT Satellite and Proximus go up and down completely randomly.
Pair Corralation between APT Satellite and Proximus
If you would invest 110.00 in Proximus NV ADR on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Proximus NV ADR or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
APT Satellite Holdings vs. Proximus NV ADR
Performance |
| Timeline |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Proximus NV ADR |
APT Satellite and Proximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Satellite and Proximus
The main advantage of trading using opposite APT Satellite and Proximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Satellite position performs unexpectedly, Proximus 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 Proximus will offset losses from the drop in Proximus' long position.| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
| Proximus vs. Singapore Telecommunications Limited | Proximus vs. Telstra Limited | Proximus vs. MTN Group Ltd | Proximus vs. Tele2 AB |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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