Correlation Between Grupo Televisa and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Criteo Sa 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 Criteo Sa 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 Criteo Sa, you can compare the effects of market volatilities on Grupo Televisa and Criteo Sa 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 Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Criteo Sa.
Diversification Opportunities for Grupo Televisa and Criteo Sa
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Criteo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa 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 Criteo Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Criteo Sa has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Criteo Sa go up and down completely randomly.
Pair Corralation between Grupo Televisa and Criteo Sa
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Criteo Sa. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 1.15 times less risky than Criteo Sa. The stock trades about -0.09 of its potential returns per unit of risk. The Criteo Sa is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4,101 in Criteo Sa on August 24, 2024 and sell it today you would lose (239.00) from holding Criteo Sa or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Criteo Sa
Performance |
| Timeline |
| Grupo Televisa SAB |
| Criteo Sa |
Grupo Televisa and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Criteo Sa
The main advantage of trading using opposite Grupo Televisa and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Criteo Sa 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 Criteo Sa will offset losses from the drop in Criteo Sa's long position.| Grupo Televisa vs. Orange SA ADR | Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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