Correlation Between APT Satellite and PT Indosat
Can any of the company-specific risk be diversified away by investing in both APT Satellite and PT Indosat 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 PT Indosat 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 PT Indosat Tbk, you can compare the effects of market volatilities on APT Satellite and PT Indosat 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 PT Indosat. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Satellite and PT Indosat.
Diversification Opportunities for APT Satellite and PT Indosat
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APT and PTITF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding APT Satellite Holdings and PT Indosat Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indosat Tbk 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 PT Indosat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indosat Tbk has no effect on the direction of APT Satellite i.e., APT Satellite and PT Indosat go up and down completely randomly.
Pair Corralation between APT Satellite and PT Indosat
Assuming the 90 days horizon APT Satellite is expected to generate 67.52 times less return on investment than PT Indosat. But when comparing it to its historical volatility, APT Satellite Holdings is 14.73 times less risky than PT Indosat. It trades about 0.04 of its potential returns per unit of risk. PT Indosat Tbk is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 40.00 in PT Indosat Tbk on August 26, 2024 and sell it today you would earn a total of 23.00 from holding PT Indosat Tbk or generate 57.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.93% |
| Values | Daily Returns |
APT Satellite Holdings vs. PT Indosat Tbk
Performance |
| Timeline |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PT Indosat Tbk |
APT Satellite and PT Indosat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Satellite and PT Indosat
The main advantage of trading using opposite APT Satellite and PT Indosat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Satellite position performs unexpectedly, PT Indosat 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 PT Indosat will offset losses from the drop in PT Indosat's long position.| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
| PT Indosat vs. Singapore Telecommunications Limited | PT Indosat vs. China Tower | PT Indosat vs. Vodafone Group PLC | PT Indosat vs. MTN Group Ltd |
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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