Correlation Between APT Satellite and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both APT Satellite and Singapore Telecommunicatio 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 Singapore Telecommunicatio 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 Singapore Telecommunications Limited, you can compare the effects of market volatilities on APT Satellite and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Satellite and Singapore Telecommunicatio.
Diversification Opportunities for APT Satellite and Singapore Telecommunicatio
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APT and Singapore is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding APT Satellite Holdings and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of APT Satellite i.e., APT Satellite and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between APT Satellite and Singapore Telecommunicatio
If you would invest 28.00 in APT Satellite Holdings on November 3, 2024 and sell it today you would earn a total of 0.00 from holding APT Satellite Holdings or generate 0.0% 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. Singapore Telecommunications L
Performance |
| Timeline |
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Singapore Telecommunicatio |
APT Satellite and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Satellite and Singapore Telecommunicatio
The main advantage of trading using opposite APT Satellite and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Satellite position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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