Correlation Between Grupo Televisa and ATN International
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and ATN International 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 ATN International 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 ATN International, you can compare the effects of market volatilities on Grupo Televisa and ATN International 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 ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and ATN International.
Diversification Opportunities for Grupo Televisa and ATN International
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and ATN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International 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 ATN International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN International has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and ATN International go up and down completely randomly.
Pair Corralation between Grupo Televisa and ATN International
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the ATN International. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 1.67 times less risky than ATN International. The stock trades about -0.39 of its potential returns per unit of risk. The ATN International is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,055 in ATN International on September 2, 2024 and sell it today you would lose (77.00) from holding ATN International or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. ATN International
Performance |
| Timeline |
| Grupo Televisa SAB |
| ATN International |
Grupo Televisa and ATN International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and ATN International
The main advantage of trading using opposite Grupo Televisa and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, ATN International 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 ATN International will offset losses from the drop in ATN International's long position.| Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. Shenandoah Telecommunications Co |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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