Correlation Between Grupo Televisa and KT
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and KT 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 KT 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 KT Corporation, you can compare the effects of market volatilities on Grupo Televisa and KT 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 KT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and KT.
Diversification Opportunities for Grupo Televisa and KT
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and KT is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Corporation 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 KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and KT go up and down completely randomly.
Pair Corralation between Grupo Televisa and KT
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the KT. In addition to that, Grupo Televisa is 1.58 times more volatile than KT Corporation. It trades about -0.09 of its total potential returns per unit of risk. KT Corporation is currently generating about 0.16 per unit of volatility. If you would invest 1,568 in KT Corporation on August 28, 2024 and sell it today you would earn a total of 128.00 from holding KT Corporation or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. KT Corp.
Performance |
| Timeline |
| Grupo Televisa SAB |
| KT Corporation |
Grupo Televisa and KT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and KT
The main advantage of trading using opposite Grupo Televisa and KT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, KT 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 KT will offset losses from the drop in KT'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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