Correlation Between AMCON Distributing and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Grupo Televisa SAB, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Grupo Televisa.
Diversification Opportunities for AMCON Distributing and Grupo Televisa
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMCON and Grupo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and Grupo Televisa go up and down completely randomly.
Pair Corralation between AMCON Distributing and Grupo Televisa
Considering the 90-day investment horizon AMCON Distributing is expected to generate 1.93 times more return on investment than Grupo Televisa. However, AMCON Distributing is 1.93 times more volatile than Grupo Televisa SAB. It trades about 0.03 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.37 per unit of risk. If you would invest 13,285 in AMCON Distributing on September 3, 2024 and sell it today you would earn a total of 122.00 from holding AMCON Distributing or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Grupo Televisa SAB
Performance |
| Timeline |
| AMCON Distributing |
| Grupo Televisa SAB |
AMCON Distributing and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Grupo Televisa
The main advantage of trading using opposite AMCON Distributing and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
| Grupo Televisa vs. Orange SA ADR | Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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