Correlation Between Grupo Televisa and Access Power
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Access Power 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 Grupo Televisa and Access Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Televisa SAB and Access Power Co, you can compare the effects of market volatilities on Grupo Televisa and Access Power 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 Access Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Access Power.
Diversification Opportunities for Grupo Televisa and Access Power
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Access is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Access Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Power 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 Access Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Power has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Access Power go up and down completely randomly.
Pair Corralation between Grupo Televisa and Access Power
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Access Power. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 16.51 times less risky than Access Power. The stock trades about -0.45 of its potential returns per unit of risk. The Access Power Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Access Power Co on August 31, 2024 and sell it today you would earn a total of 0.07 from holding Access Power Co or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Access Power Co
Performance |
| Timeline |
| Grupo Televisa SAB |
| Access Power |
Grupo Televisa and Access Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Access Power
The main advantage of trading using opposite Grupo Televisa and Access Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Access Power 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 Access Power will offset losses from the drop in Access Power's long position.| Grupo Televisa vs. RLJ Lodging Trust | Grupo Televisa vs. Aquagold International | Grupo Televisa vs. Stepstone Group | Grupo Televisa vs. Morningstar Unconstrained Allocation |
| Access Power vs. BCE Inc | Access Power vs. Axiologix | Access Power vs. Advanced Info Service | Access Power vs. HUMANA INC |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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