Correlation Between Grupo Televisa and Stepan
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Stepan 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 Grupo Televisa and Stepan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Televisa SAB and Stepan Company, you can compare the effects of market volatilities on Grupo Televisa and Stepan 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 Grupo Televisa with a short position of Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Stepan.
Diversification Opportunities for Grupo Televisa and Stepan
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Stepan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company and Grupo Televisa 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 Grupo Televisa SAB are associated (or correlated) with Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Stepan go up and down completely randomly.
Pair Corralation between Grupo Televisa and Stepan
Assuming the 90 days horizon Grupo Televisa SAB is expected to under-perform the Stepan. In addition to that, Grupo Televisa is 2.27 times more volatile than Stepan Company. It trades about -0.01 of its total potential returns per unit of risk. Stepan Company is currently generating about -0.03 per unit of volatility. If you would invest 10,782 in Stepan Company on September 3, 2024 and sell it today you would lose (3,092) from holding Stepan Company or give up 28.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Stepan Company
Performance |
| Timeline |
| Grupo Televisa SAB |
| Stepan Company |
Grupo Televisa and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Stepan
The main advantage of trading using opposite Grupo Televisa and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| Grupo Televisa vs. Codexis | Grupo Televisa vs. Postal Realty Trust | Grupo Televisa vs. Eastman Chemical | Grupo Televisa vs. Sealed Air |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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