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

0.67

Correlation Coefficient

APT Satellite  Singapore Telecommunicatio

Poor diversification

The 3 months correlation between APT and Singapore is 0.67. 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

Assuming the 90 days horizon APT Satellite Holdings is expected to generate 0.62 times more return on investment than Singapore Telecommunicatio. However, APT Satellite Holdings is 1.61 times less risky than Singapore Telecommunicatio. It trades about 0.13 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about -0.04 per unit of risk. If you would invest  22.00  in APT Satellite Holdings on May 6, 2025 and sell it today you would earn a total of  2.00  from holding APT Satellite Holdings or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

APT Satellite Holdings  vs.  Singapore Telecommunications L

APT Satellite Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in APT Satellite Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking indicators, APT Satellite may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Singapore Telecommunicatio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singapore Telecommunications Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Singapore Telecommunicatio is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

The idea behind APT Satellite Holdings and Singapore Telecommunications Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.