Correlation Between Grupo Televisa and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Cumulus Media 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 Cumulus Media 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 Cumulus Media Class, you can compare the effects of market volatilities on Grupo Televisa and Cumulus Media 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 Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Cumulus Media.
Diversification Opportunities for Grupo Televisa and Cumulus Media
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Cumulus is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Cumulus Media go up and down completely randomly.
Pair Corralation between Grupo Televisa and Cumulus Media
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.65 times more return on investment than Cumulus Media. However, Grupo Televisa SAB is 1.53 times less risky than Cumulus Media. It trades about -0.05 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.37 per unit of risk. If you would invest 219.00 in Grupo Televisa SAB on August 27, 2024 and sell it today you would lose (12.00) from holding Grupo Televisa SAB or give up 5.48% 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. Cumulus Media Class
Performance |
| Timeline |
| Grupo Televisa SAB |
| Cumulus Media Class |
Grupo Televisa and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Cumulus Media
The main advantage of trading using opposite Grupo Televisa and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media'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 |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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