Correlation Between Grupo Televisa and JJill
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and JJill 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 JJill 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 JJill Inc, you can compare the effects of market volatilities on Grupo Televisa and JJill 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 JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and JJill.
Diversification Opportunities for Grupo Televisa and JJill
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and JJill is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc 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 JJill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJill Inc has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and JJill go up and down completely randomly.
Pair Corralation between Grupo Televisa and JJill
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the JJill. In addition to that, Grupo Televisa is 1.15 times more volatile than JJill Inc. It trades about -0.04 of its total potential returns per unit of risk. JJill Inc is currently generating about 0.01 per unit of volatility. If you would invest 2,782 in JJill Inc on September 1, 2024 and sell it today you would lose (22.00) from holding JJill Inc or give up 0.79% 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. JJill Inc
Performance |
| Timeline |
| Grupo Televisa SAB |
| JJill Inc |
Grupo Televisa and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and JJill
The main advantage of trading using opposite Grupo Televisa and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, JJill 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 JJill will offset losses from the drop in JJill'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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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