Correlation Between Grupo Televisa and Marchex
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on Grupo Televisa and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Marchex.
Diversification Opportunities for Grupo Televisa and Marchex
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Marchex is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Marchex go up and down completely randomly.
Pair Corralation between Grupo Televisa and Marchex
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Marchex. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 3.05 times less risky than Marchex. The stock trades about -0.36 of its potential returns per unit of risk. The Marchex is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Marchex on September 24, 2024 and sell it today you would earn a total of 29.00 from holding Marchex or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Marchex
Performance |
| Timeline |
| Grupo Televisa SAB |
| Marchex |
Grupo Televisa and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Marchex
The main advantage of trading using opposite Grupo Televisa and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex'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 |
| Marchex vs. CMG Holdings Group | Marchex vs. Beyond Commerce | Marchex vs. Mastermind | Marchex vs. Aquagold International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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