Correlation Between Telia Company and APT Satellite
Can any of the company-specific risk be diversified away by investing in both Telia Company and APT Satellite 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 Telia Company and APT Satellite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telia Company AB and APT Satellite Holdings, you can compare the effects of market volatilities on Telia Company and APT Satellite 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 Telia Company with a short position of APT Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telia Company and APT Satellite.
Diversification Opportunities for Telia Company and APT Satellite
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Telia and APT is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Telia Company AB and APT Satellite Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Satellite Holdings and Telia Company 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 Telia Company AB are associated (or correlated) with APT Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Satellite Holdings has no effect on the direction of Telia Company i.e., Telia Company and APT Satellite go up and down completely randomly.
Pair Corralation between Telia Company and APT Satellite
If you would invest 28.00 in APT Satellite Holdings on August 29, 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 Together |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Telia Company AB vs. APT Satellite Holdings
Performance |
| Timeline |
| Telia Company |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| APT Satellite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telia Company and APT Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telia Company and APT Satellite
The main advantage of trading using opposite Telia Company and APT Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telia Company position performs unexpectedly, APT Satellite 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 APT Satellite will offset losses from the drop in APT Satellite's long position.| Telia Company vs. Lipocine | Telia Company vs. Live Ventures | Telia Company vs. Tscan Therapeutics | Telia Company vs. Franklin Street Properties |
| APT Satellite vs. Verizon Communications | APT Satellite vs. T Mobile | APT Satellite vs. Lumen Technologies | APT Satellite vs. Comcast Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |