Correlation Between Liberty Global and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Liberty Global 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 Liberty Global and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Global PLC and Grupo Televisa SAB, you can compare the effects of market volatilities on Liberty Global 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 Liberty Global with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Global and Grupo Televisa.
Diversification Opportunities for Liberty Global and Grupo Televisa
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liberty and Grupo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Global PLC 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 Liberty Global 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 Liberty Global PLC 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 Liberty Global i.e., Liberty Global and Grupo Televisa go up and down completely randomly.
Pair Corralation between Liberty Global and Grupo Televisa
Assuming the 90 days horizon Liberty Global PLC is expected to generate 1.12 times more return on investment than Grupo Televisa. However, Liberty Global is 1.12 times more volatile than Grupo Televisa SAB. It trades about 0.0 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.03 per unit of risk. If you would invest 1,900 in Liberty Global PLC on September 12, 2024 and sell it today you would lose (639.00) from holding Liberty Global PLC or give up 33.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Global PLC vs. Grupo Televisa SAB
Performance |
| Timeline |
| Liberty Global PLC |
| Grupo Televisa SAB |
Liberty Global and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Global and Grupo Televisa
The main advantage of trading using opposite Liberty Global and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Global 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.| Liberty Global vs. Liberty Global PLC | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Broadband Srs |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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