Correlation Between SIMON and Grupo Televisa
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By analyzing existing cross correlation between SIMON PPTY GROUP and Grupo Televisa SAB, you can compare the effects of market volatilities on SIMON and Grupo Televisa 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 SIMON with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIMON and Grupo Televisa.
Diversification Opportunities for SIMON and Grupo Televisa
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIMON and Grupo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SIMON PPTY GROUP and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB and SIMON 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 SIMON PPTY GROUP are associated (or correlated) with Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of SIMON i.e., SIMON and Grupo Televisa go up and down completely randomly.
Pair Corralation between SIMON and Grupo Televisa
Assuming the 90 days trading horizon SIMON PPTY GROUP is expected to generate 0.12 times more return on investment than Grupo Televisa. However, SIMON PPTY GROUP is 8.41 times less risky than Grupo Televisa. It trades about 0.23 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.36 per unit of risk. If you would invest 9,734 in SIMON PPTY GROUP on September 3, 2024 and sell it today you would earn a total of 133.00 from holding SIMON PPTY GROUP or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
SIMON PPTY GROUP vs. Grupo Televisa SAB
Performance |
| Timeline |
| SIMON PPTY GROUP |
| Grupo Televisa SAB |
SIMON and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIMON and Grupo Televisa
The main advantage of trading using opposite SIMON and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMON position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa's long position.The idea behind SIMON PPTY GROUP and Grupo Televisa SAB 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.| Grupo Televisa vs. Orange SA ADR | Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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