Correlation Between Stepstone and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Stepstone 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 Stepstone and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepstone Group and Grupo Televisa SAB, you can compare the effects of market volatilities on Stepstone 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 Stepstone with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Grupo Televisa.
Diversification Opportunities for Stepstone and Grupo Televisa
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stepstone and Grupo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group 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 Stepstone 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 Stepstone Group 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 Stepstone i.e., Stepstone and Grupo Televisa go up and down completely randomly.
Pair Corralation between Stepstone and Grupo Televisa
Given the investment horizon of 90 days Stepstone Group is expected to generate 1.16 times more return on investment than Grupo Televisa. However, Stepstone is 1.16 times more volatile than Grupo Televisa SAB. It trades about 0.19 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.39 per unit of risk. If you would invest 5,900 in Stepstone Group on September 2, 2024 and sell it today you would earn a total of 689.00 from holding Stepstone Group or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stepstone Group vs. Grupo Televisa SAB
Performance |
| Timeline |
| Stepstone Group |
| Grupo Televisa SAB |
Stepstone and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Grupo Televisa
The main advantage of trading using opposite Stepstone and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone 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.| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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