Correlation Between Grupo Televisa and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and PennantPark Floating 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 PennantPark Floating 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 PennantPark Floating Rate, you can compare the effects of market volatilities on Grupo Televisa and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and PennantPark Floating.
Diversification Opportunities for Grupo Televisa and PennantPark Floating
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and PennantPark is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and PennantPark Floating go up and down completely randomly.
Pair Corralation between Grupo Televisa and PennantPark Floating
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the PennantPark Floating. In addition to that, Grupo Televisa is 3.21 times more volatile than PennantPark Floating Rate. It trades about -0.03 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.07 per unit of volatility. If you would invest 809.00 in PennantPark Floating Rate on December 4, 2024 and sell it today you would earn a total of 304.00 from holding PennantPark Floating Rate or generate 37.58% 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. PennantPark Floating Rate
Performance |
| Timeline |
| Grupo Televisa SAB |
| PennantPark Floating Rate |
Grupo Televisa and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and PennantPark Floating
The main advantage of trading using opposite Grupo Televisa and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. SK Telecom Co |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |