Correlation Between SunLink Health and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both SunLink Health 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 SunLink Health and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunLink Health Systems and Grupo Televisa SAB, you can compare the effects of market volatilities on SunLink Health 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 SunLink Health with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Grupo Televisa.
Diversification Opportunities for SunLink Health and Grupo Televisa
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SunLink and Grupo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems 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 SunLink Health 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 SunLink Health Systems 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 SunLink Health i.e., SunLink Health and Grupo Televisa go up and down completely randomly.
Pair Corralation between SunLink Health and Grupo Televisa
Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the Grupo Televisa. In addition to that, SunLink Health is 1.06 times more volatile than Grupo Televisa SAB. It trades about -0.21 of its total potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.02 per unit of volatility. If you would invest 213.00 in Grupo Televisa SAB on August 26, 2024 and sell it today you would lose (6.00) from holding Grupo Televisa SAB or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Grupo Televisa SAB
Performance |
| Timeline |
| SunLink Health Systems |
| Grupo Televisa SAB |
SunLink Health and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Grupo Televisa
The main advantage of trading using opposite SunLink Health and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health 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.The idea behind SunLink Health Systems and Grupo Televisa SAB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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