Correlation Between SBM Offshore and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both SBM Offshore 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 SBM Offshore and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM Offshore NV and Grupo Televisa SAB, you can compare the effects of market volatilities on SBM Offshore 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 SBM Offshore with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Grupo Televisa.
Diversification Opportunities for SBM Offshore and Grupo Televisa
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBM and Grupo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV 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 SBM Offshore 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 SBM Offshore NV 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 SBM Offshore i.e., SBM Offshore and Grupo Televisa go up and down completely randomly.
Pair Corralation between SBM Offshore and Grupo Televisa
Assuming the 90 days horizon SBM Offshore NV is expected to generate 0.7 times more return on investment than Grupo Televisa. However, SBM Offshore NV is 1.42 times less risky than Grupo Televisa. It trades about 0.11 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.02 per unit of risk. If you would invest 1,245 in SBM Offshore NV on September 3, 2024 and sell it today you would earn a total of 635.00 from holding SBM Offshore NV or generate 51.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.33% |
| Values | Daily Returns |
SBM Offshore NV vs. Grupo Televisa SAB
Performance |
| Timeline |
| SBM Offshore NV |
| Grupo Televisa SAB |
SBM Offshore and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Grupo Televisa
The main advantage of trading using opposite SBM Offshore and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore 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.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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