Correlation Between Grupo Televisa and Sabre Gold
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Sabre Gold 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 Sabre Gold 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 Sabre Gold Mines, you can compare the effects of market volatilities on Grupo Televisa and Sabre Gold 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 Sabre Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Sabre Gold.
Diversification Opportunities for Grupo Televisa and Sabre Gold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Sabre is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Sabre Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Gold Mines 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 Sabre Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Gold Mines has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Sabre Gold go up and down completely randomly.
Pair Corralation between Grupo Televisa and Sabre Gold
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Sabre Gold. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 2.42 times less risky than Sabre Gold. The stock trades about -0.36 of its potential returns per unit of risk. The Sabre Gold Mines is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Sabre Gold Mines on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Sabre Gold Mines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Sabre Gold Mines
Performance |
| Timeline |
| Grupo Televisa SAB |
| Sabre Gold Mines |
Grupo Televisa and Sabre Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Sabre Gold
The main advantage of trading using opposite Grupo Televisa and Sabre Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Sabre Gold 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 Sabre Gold will offset losses from the drop in Sabre Gold's long position.| Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Shenandoah Telecommunications Co | Grupo Televisa vs. Liberty Global PLC |
| Sabre Gold vs. Telefonica Brasil SA | Sabre Gold vs. Vodafone Group PLC | Sabre Gold vs. Grupo Televisa SAB | Sabre Gold vs. America Movil SAB |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |