Correlation Between Grupo Televisa and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and SBM Offshore 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 SBM Offshore 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 SBM Offshore NV, you can compare the effects of market volatilities on Grupo Televisa and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and SBM Offshore.
Diversification Opportunities for Grupo Televisa and SBM Offshore
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and SBM is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and SBM Offshore go up and down completely randomly.
Pair Corralation between Grupo Televisa and SBM Offshore
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the SBM Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 1.54 times less risky than SBM Offshore. The stock trades about -0.03 of its potential returns per unit of risk. The SBM Offshore NV is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,577 in SBM Offshore NV on September 2, 2024 and sell it today you would earn a total of 303.00 from holding SBM Offshore NV or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.38% |
| Values | Daily Returns |
Grupo Televisa SAB vs. SBM Offshore NV
Performance |
| Timeline |
| Grupo Televisa SAB |
| SBM Offshore NV |
Grupo Televisa and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and SBM Offshore
The main advantage of trading using opposite Grupo Televisa and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore'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 |
| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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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