Correlation Between Grupo Televisa and RLJ Lodging
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and RLJ Lodging 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 RLJ Lodging 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 RLJ Lodging Trust, you can compare the effects of market volatilities on Grupo Televisa and RLJ Lodging 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 RLJ Lodging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and RLJ Lodging.
Diversification Opportunities for Grupo Televisa and RLJ Lodging
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and RLJ is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and RLJ Lodging Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLJ Lodging Trust 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 RLJ Lodging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLJ Lodging Trust has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and RLJ Lodging go up and down completely randomly.
Pair Corralation between Grupo Televisa and RLJ Lodging
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the RLJ Lodging. In addition to that, Grupo Televisa is 1.4 times more volatile than RLJ Lodging Trust. It trades about -0.45 of its total potential returns per unit of risk. RLJ Lodging Trust is currently generating about 0.3 per unit of volatility. If you would invest 909.00 in RLJ Lodging Trust on August 31, 2024 and sell it today you would earn a total of 105.00 from holding RLJ Lodging Trust or generate 11.55% 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. RLJ Lodging Trust
Performance |
| Timeline |
| Grupo Televisa SAB |
| RLJ Lodging Trust |
Grupo Televisa and RLJ Lodging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and RLJ Lodging
The main advantage of trading using opposite Grupo Televisa and RLJ Lodging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, RLJ Lodging 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 RLJ Lodging will offset losses from the drop in RLJ Lodging's long position.| Grupo Televisa vs. RLJ Lodging Trust | Grupo Televisa vs. Aquagold International | Grupo Televisa vs. Stepstone Group | Grupo Televisa vs. Morningstar Unconstrained Allocation |
| RLJ Lodging vs. Sunstone Hotel Investors | RLJ Lodging vs. Pebblebrook Hotel Trust | RLJ Lodging vs. Ryman Hospitality Properties | RLJ Lodging vs. Chatham Lodging Trust |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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