Correlation Between Grupo Televisa and Pinstripes Holdings

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Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Pinstripes Holdings 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 Pinstripes Holdings 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 Pinstripes Holdings, you can compare the effects of market volatilities on Grupo Televisa and Pinstripes Holdings 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 Pinstripes Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Pinstripes Holdings.

Diversification Opportunities for Grupo Televisa and Pinstripes Holdings

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Grupo and Pinstripes is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Pinstripes Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinstripes Holdings 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 Pinstripes Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinstripes Holdings has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Pinstripes Holdings go up and down completely randomly.

Pair Corralation between Grupo Televisa and Pinstripes Holdings

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Pinstripes Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 3.11 times less risky than Pinstripes Holdings. The stock trades about -0.44 of its potential returns per unit of risk. The Pinstripes Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  80.00  in Pinstripes Holdings on August 30, 2024 and sell it today you would lose (3.00) from holding Pinstripes Holdings or give up 3.75% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Grupo Televisa SAB  vs.  Pinstripes Holdings

 Performance 
       Timeline  
Grupo Televisa SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Televisa SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Grupo Televisa is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Pinstripes Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pinstripes Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Grupo Televisa and Pinstripes Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Televisa and Pinstripes Holdings

The main advantage of trading using opposite Grupo Televisa and Pinstripes Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Pinstripes Holdings 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 Pinstripes Holdings will offset losses from the drop in Pinstripes Holdings' long position.
The idea behind Grupo Televisa SAB and Pinstripes Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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