Correlation Between Grupo Televisa and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Kandi Technologies 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 Kandi Technologies 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 Kandi Technologies Group, you can compare the effects of market volatilities on Grupo Televisa and Kandi Technologies 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 Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Kandi Technologies.
Diversification Opportunities for Grupo Televisa and Kandi Technologies
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Kandi is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies 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 Kandi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandi Technologies has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Kandi Technologies go up and down completely randomly.
Pair Corralation between Grupo Televisa and Kandi Technologies
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Kandi Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 2.02 times less risky than Kandi Technologies. The stock trades about -0.45 of its potential returns per unit of risk. The Kandi Technologies Group is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Kandi Technologies Group on August 30, 2024 and sell it today you would lose (18.00) from holding Kandi Technologies Group or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Kandi Technologies Group
Performance |
| Timeline |
| Grupo Televisa SAB |
| Kandi Technologies |
Grupo Televisa and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Kandi Technologies
The main advantage of trading using opposite Grupo Televisa and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Kandi Technologies 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 Kandi Technologies will offset losses from the drop in Kandi Technologies' long position.| Grupo Televisa vs. Merck Company | Grupo Televisa vs. Pharvaris BV | Grupo Televisa vs. Brinker International | Grupo Televisa vs. Alcoa Corp |
| Kandi Technologies vs. Gentex | Kandi Technologies vs. Adient PLC | Kandi Technologies vs. Autoliv | Kandi Technologies vs. Fox Factory Holding |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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