Correlation Between Consol Energy and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Grupo Televisa 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 Consol Energy and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Grupo Televisa SAB, you can compare the effects of market volatilities on Consol Energy and Grupo Televisa 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 Consol Energy with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Grupo Televisa.
Diversification Opportunities for Consol Energy and Grupo Televisa
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Consol and Grupo is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB and Consol Energy 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 Consol Energy are associated (or correlated) with Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of Consol Energy i.e., Consol Energy and Grupo Televisa go up and down completely randomly.
Pair Corralation between Consol Energy and Grupo Televisa
Given the investment horizon of 90 days Consol Energy is expected to generate 1.29 times more return on investment than Grupo Televisa. However, Consol Energy is 1.29 times more volatile than Grupo Televisa SAB. It trades about 0.28 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.45 per unit of risk. If you would invest 10,944 in Consol Energy on August 31, 2024 and sell it today you would earn a total of 2,195 from holding Consol Energy or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Grupo Televisa SAB
Performance |
| Timeline |
| Consol Energy |
| Grupo Televisa SAB |
Consol Energy and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Grupo Televisa
The main advantage of trading using opposite Consol Energy and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa's long position.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
| Grupo Televisa vs. RLJ Lodging Trust | Grupo Televisa vs. Aquagold International | Grupo Televisa vs. Stepstone Group | Grupo Televisa vs. Morningstar Unconstrained Allocation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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