Correlation Between Capri Holdings and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Capri Holdings 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 Capri Holdings and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Grupo Televisa SAB, you can compare the effects of market volatilities on Capri Holdings 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 Capri Holdings with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Grupo Televisa.
Diversification Opportunities for Capri Holdings and Grupo Televisa
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capri and Grupo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings 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 Capri Holdings 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 Capri Holdings 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 Capri Holdings i.e., Capri Holdings and Grupo Televisa go up and down completely randomly.
Pair Corralation between Capri Holdings and Grupo Televisa
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Grupo Televisa. But the stock apears to be less risky and, when comparing its historical volatility, Capri Holdings is 1.04 times less risky than Grupo Televisa. The stock trades about -0.03 of its potential returns per unit of risk. The Grupo Televisa SAB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Grupo Televisa SAB on September 1, 2024 and sell it today you would lose (14.00) from holding Grupo Televisa SAB or give up 21.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Capri Holdings vs. Grupo Televisa SAB
Performance |
| Timeline |
| Capri Holdings |
| Grupo Televisa SAB |
Capri Holdings and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Grupo Televisa
The main advantage of trading using opposite Capri Holdings and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings 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.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Grupo Televisa vs. Equinix | Grupo Televisa vs. Independence Realty Trust | Grupo Televisa vs. Eldorado Gold Corp | Grupo Televisa vs. Minerals Technologies |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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