Correlation Between Grupo Televisa and Integral
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on Grupo Televisa and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Integral.
Diversification Opportunities for Grupo Televisa and Integral
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Integral is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Integral go up and down completely randomly.
Pair Corralation between Grupo Televisa and Integral
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Integral. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 1.5 times less risky than Integral. The stock trades about -0.39 of its potential returns per unit of risk. The Integral Ad Science is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,190 in Integral Ad Science on September 2, 2024 and sell it today you would lose (72.00) from holding Integral Ad Science or give up 6.05% 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. Integral Ad Science
Performance |
| Timeline |
| Grupo Televisa SAB |
| Integral Ad Science |
Grupo Televisa and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Integral
The main advantage of trading using opposite Grupo Televisa and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral'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 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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