Correlation Between Grupo Televisa and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and SunLink Health 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 SunLink Health 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 SunLink Health Systems, you can compare the effects of market volatilities on Grupo Televisa and SunLink Health 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 SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and SunLink Health.
Diversification Opportunities for Grupo Televisa and SunLink Health
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and SunLink is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems 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 SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and SunLink Health go up and down completely randomly.
Pair Corralation between Grupo Televisa and SunLink Health
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.94 times more return on investment than SunLink Health. However, Grupo Televisa SAB is 1.06 times less risky than SunLink Health. It trades about -0.02 of its potential returns per unit of risk. SunLink Health Systems is currently generating about -0.21 per unit of risk. If you would invest 213.00 in Grupo Televisa SAB on August 26, 2024 and sell it today you would lose (6.00) from holding Grupo Televisa SAB or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. SunLink Health Systems
Performance |
| Timeline |
| Grupo Televisa SAB |
| SunLink Health Systems |
Grupo Televisa and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and SunLink Health
The main advantage of trading using opposite Grupo Televisa and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health'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 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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