Correlation Between Grupo and Expand Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Grupo Televisa SAB and Expand Energy, you can compare the effects of market volatilities on Grupo and Expand Energy 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 with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo and Expand Energy.
Diversification Opportunities for Grupo and Expand Energy
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Expand is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Grupo 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 Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of Grupo i.e., Grupo and Expand Energy go up and down completely randomly.
Pair Corralation between Grupo and Expand Energy
Assuming the 90 days trading horizon Grupo is expected to generate 4.67 times less return on investment than Expand Energy. But when comparing it to its historical volatility, Grupo Televisa SAB is 2.07 times less risky than Expand Energy. It trades about 0.03 of its potential returns per unit of risk. Expand Energy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,800 in Expand Energy on November 3, 2024 and sell it today you would earn a total of 2,100 from holding Expand Energy or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.44% |
| Values | Daily Returns |
Grupo Televisa SAB vs. Expand Energy
Performance |
| Timeline |
| Grupo Televisa SAB |
| Expand Energy |
Grupo and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo and Expand Energy
The main advantage of trading using opposite Grupo and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo position performs unexpectedly, Expand Energy 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 Expand Energy will offset losses from the drop in Expand Energy's long position.The idea behind Grupo Televisa SAB and Expand Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Expand Energy vs. BRP Inc | Expand Energy vs. Life Time Group | Expand Energy vs. Pintec Technology Holdings | Expand Energy vs. Nasdaq 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |