Correlation Between Grupo Televisa and Axtel SAB
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By analyzing existing cross correlation between Grupo Televisa SAB and Axtel SAB de, you can compare the effects of market volatilities on Grupo Televisa and Axtel SAB 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 Axtel SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Axtel SAB.
Diversification Opportunities for Grupo Televisa and Axtel SAB
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Axtel is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Axtel SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axtel SAB de 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 Axtel SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axtel SAB de has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Axtel SAB go up and down completely randomly.
Pair Corralation between Grupo Televisa and Axtel SAB
Assuming the 90 days trading horizon Grupo Televisa SAB is expected to under-perform the Axtel SAB. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 1.45 times less risky than Axtel SAB. The stock trades about -0.04 of its potential returns per unit of risk. The Axtel SAB de is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Axtel SAB de on September 4, 2024 and sell it today you would lose (24.00) from holding Axtel SAB de or give up 17.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Axtel SAB de
Performance |
| Timeline |
| Grupo Televisa SAB |
| Axtel SAB de |
Grupo Televisa and Axtel SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Axtel SAB
The main advantage of trading using opposite Grupo Televisa and Axtel SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Axtel SAB 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 Axtel SAB will offset losses from the drop in Axtel SAB's long position.| Grupo Televisa vs. Fomento Econmico Mexicano | Grupo Televisa vs. Grupo Mxico SAB | Grupo Televisa vs. Grupo Financiero Banorte | Grupo Televisa vs. Alfa SAB de |
| Axtel SAB vs. Alfa SAB de | Axtel SAB vs. Consorcio ARA S | Axtel SAB vs. Grupo Famsa SAB | Axtel SAB vs. Grupo Televisa SAB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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