Correlation Between Grupo Televisa and VEON
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and VEON 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 VEON 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 VEON, you can compare the effects of market volatilities on Grupo Televisa and VEON 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 VEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and VEON.
Diversification Opportunities for Grupo Televisa and VEON
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and VEON is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and VEON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEON 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 VEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEON has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and VEON go up and down completely randomly.
Pair Corralation between Grupo Televisa and VEON
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the VEON. In addition to that, Grupo Televisa is 1.64 times more volatile than VEON. It trades about -0.09 of its total potential returns per unit of risk. VEON is currently generating about 0.11 per unit of volatility. If you would invest 2,540 in VEON on August 27, 2024 and sell it today you would earn a total of 750.00 from holding VEON or generate 29.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. VEON
Performance |
| Timeline |
| Grupo Televisa SAB |
| VEON |
Grupo Televisa and VEON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and VEON
The main advantage of trading using opposite Grupo Televisa and VEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, VEON 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 VEON will offset losses from the drop in VEON'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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