Correlation Between Grupo Televisa and Gray Television
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Gray Television 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 Gray Television 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 Gray Television, you can compare the effects of market volatilities on Grupo Televisa and Gray Television 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 Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Gray Television.
Diversification Opportunities for Grupo Televisa and Gray Television
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Gray is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television 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 Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Gray Television go up and down completely randomly.
Pair Corralation between Grupo Televisa and Gray Television
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.49 times more return on investment than Gray Television. However, Grupo Televisa SAB is 2.06 times less risky than Gray Television. It trades about 0.58 of its potential returns per unit of risk. Gray Television is currently generating about 0.22 per unit of risk. If you would invest 171.00 in Grupo Televisa SAB on November 18, 2024 and sell it today you would earn a total of 46.00 from holding Grupo Televisa SAB or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Gray Television
Performance |
| Timeline |
| Grupo Televisa SAB |
| Gray Television |
Grupo Televisa and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Gray Television
The main advantage of trading using opposite Grupo Televisa and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. SK Telecom Co |
| Gray Television vs. E W Scripps | Gray Television vs. Saga Communications | Gray Television vs. iHeartMedia Class A | Gray Television vs. Cumulus Media Class |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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