Correlation Between Flexible Solutions and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Flexible Solutions 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 Flexible Solutions and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexible Solutions International and Grupo Televisa SAB, you can compare the effects of market volatilities on Flexible Solutions 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 Flexible Solutions with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Grupo Televisa.
Diversification Opportunities for Flexible Solutions and Grupo Televisa
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flexible and Grupo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation 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 Flexible Solutions 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 Flexible Solutions International 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 Flexible Solutions i.e., Flexible Solutions and Grupo Televisa go up and down completely randomly.
Pair Corralation between Flexible Solutions and Grupo Televisa
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 1.24 times more return on investment than Grupo Televisa. However, Flexible Solutions is 1.24 times more volatile than Grupo Televisa SAB. It trades about 0.15 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.08 per unit of risk. If you would invest 216.00 in Flexible Solutions International on September 2, 2024 and sell it today you would earn a total of 199.00 from holding Flexible Solutions International or generate 92.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexible Solutions Internation vs. Grupo Televisa SAB
Performance |
| Timeline |
| Flexible Solutions |
| Grupo Televisa SAB |
Flexible Solutions and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and Grupo Televisa
The main advantage of trading using opposite Flexible Solutions and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions 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.| Flexible Solutions vs. Orion Engineered Carbons | Flexible Solutions vs. International Flavors Fragrances | Flexible Solutions vs. Sociedad Quimica y | Flexible Solutions vs. Albemarle Corp |
| Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. Shenandoah Telecommunications Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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