Correlation Between Grupo Televisa and Telecom Italia
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Telecom Italia 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 Telecom Italia 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 Telecom Italia SpA, you can compare the effects of market volatilities on Grupo Televisa and Telecom Italia 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 Telecom Italia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Telecom Italia.
Diversification Opportunities for Grupo Televisa and Telecom Italia
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Telecom is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Telecom Italia SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Italia SpA 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 Telecom Italia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Italia SpA has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Telecom Italia go up and down completely randomly.
Pair Corralation between Grupo Televisa and Telecom Italia
If you would invest 327.00 in Telecom Italia SpA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Telecom Italia SpA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Telecom Italia SpA
Performance |
| Timeline |
| Grupo Televisa SAB |
| Telecom Italia SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Televisa and Telecom Italia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and Telecom Italia
The main advantage of trading using opposite Grupo Televisa and Telecom Italia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Telecom Italia 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 Telecom Italia will offset losses from the drop in Telecom Italia'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 |
| Telecom Italia vs. Telefonica Brasil SA | Telecom Italia vs. Orange SA ADR | Telecom Italia vs. Vodafone Group PLC | Telecom Italia vs. Grupo Televisa 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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