Correlation Between VTC Telecommunicatio and Asia Pacific

Can any of the company-specific risk be diversified away by investing in both VTC Telecommunicatio and Asia Pacific 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 VTC Telecommunicatio and Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VTC Telecommunications JSC and Asia Pacific Investment, you can compare the effects of market volatilities on VTC Telecommunicatio and Asia Pacific 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 VTC Telecommunicatio with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of VTC Telecommunicatio and Asia Pacific.

Diversification Opportunities for VTC Telecommunicatio and Asia Pacific

-0.3

Correlation Coefficient

VTC Telecommunicatio  Asia Pacific

Very good diversification

The 3 months correlation between VTC and Asia is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding VTC Telecommunications JSC and Asia Pacific Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investment and VTC Telecommunicatio 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 VTC Telecommunications JSC are associated (or correlated) with Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investment has no effect on the direction of VTC Telecommunicatio i.e., VTC Telecommunicatio and Asia Pacific go up and down completely randomly.

Pair Corralation between VTC Telecommunicatio and Asia Pacific

Assuming the 90 days trading horizon VTC Telecommunicatio is expected to generate 5.74 times less return on investment than Asia Pacific. But when comparing it to its historical volatility, VTC Telecommunications JSC is 1.18 times less risky than Asia Pacific. It trades about 0.05 of its potential returns per unit of risk. Asia Pacific Investment is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  520,000  in Asia Pacific Investment on April 22, 2025 and sell it today you would earn a total of  380,000  from holding Asia Pacific Investment or generate 73.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	72.13%
Values	Daily Returns

VTC Telecommunications JSC  vs.  Asia Pacific Investment

VTC Telecommunications

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in VTC Telecommunications JSC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, VTC Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Asia Pacific Investment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Asia Pacific Investment are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Asia Pacific displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VTC Telecommunicatio and Asia Pacific

The main advantage of trading using opposite VTC Telecommunicatio and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTC Telecommunicatio position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.

The idea behind VTC Telecommunications JSC and Asia Pacific Investment 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.