Correlation Between Grupo Televisa and Deutsche Telekom
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Deutsche Telekom 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 Deutsche Telekom 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 Deutsche Telekom AG, you can compare the effects of market volatilities on Grupo Televisa and Deutsche Telekom 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 Deutsche Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Deutsche Telekom.
Diversification Opportunities for Grupo Televisa and Deutsche Telekom
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Deutsche is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Deutsche Telekom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Telekom 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 Deutsche Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Telekom has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Deutsche Telekom go up and down completely randomly.
Pair Corralation between Grupo Televisa and Deutsche Telekom
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Deutsche Telekom. In addition to that, Grupo Televisa is 2.8 times more volatile than Deutsche Telekom AG. It trades about -0.03 of its total potential returns per unit of risk. Deutsche Telekom AG is currently generating about 0.06 per unit of volatility. If you would invest 1,969 in Deutsche Telekom AG on August 27, 2024 and sell it today you would earn a total of 224.00 from holding Deutsche Telekom AG or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.65% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Deutsche Telekom AG
Performance |
| Timeline |
| Grupo Televisa SAB |
| Deutsche Telekom |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Televisa and Deutsche Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Deutsche Telekom
The main advantage of trading using opposite Grupo Televisa and Deutsche Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Deutsche Telekom 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 Deutsche Telekom will offset losses from the drop in Deutsche Telekom'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 |
| Deutsche Telekom vs. KDDI Corp PK | Deutsche Telekom vs. Nippon Telegraph Telephone | Deutsche Telekom vs. Softbank Group Corp | Deutsche Telekom vs. KT Corporation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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