Correlation Between APT Satellite and PCCW
Can any of the company-specific risk be diversified away by investing in both APT Satellite and PCCW 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 PCCW 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 PCCW Limited, you can compare the effects of market volatilities on APT Satellite and PCCW 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 PCCW. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Satellite and PCCW.
Diversification Opportunities for APT Satellite and PCCW
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between APT and PCCW is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding APT Satellite Holdings and PCCW Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCCW Limited 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 PCCW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCCW Limited has no effect on the direction of APT Satellite i.e., APT Satellite and PCCW go up and down completely randomly.
Pair Corralation between APT Satellite and PCCW
If you would invest 568.00 in PCCW Limited on November 5, 2024 and sell it today you would earn a total of 42.00 from holding PCCW Limited or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
APT Satellite Holdings vs. PCCW Limited
Performance |
| Timeline |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PCCW Limited |
APT Satellite and PCCW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Satellite and PCCW
The main advantage of trading using opposite APT Satellite and PCCW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Satellite position performs unexpectedly, PCCW 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 PCCW will offset losses from the drop in PCCW's long position.| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
| PCCW vs. PCCW Limited | PCCW vs. New World Development | PCCW vs. Guangdong Investment | PCCW vs. Bank of East |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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