Correlation Between Grupo Televisa and ITV PLC
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and ITV PLC 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 ITV PLC 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 ITV PLC ADR, you can compare the effects of market volatilities on Grupo Televisa and ITV PLC 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 ITV PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and ITV PLC.
Diversification Opportunities for Grupo Televisa and ITV PLC
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and ITV is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and ITV PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV PLC ADR 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 ITV PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV PLC ADR has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and ITV PLC go up and down completely randomly.
Pair Corralation between Grupo Televisa and ITV PLC
Assuming the 90 days horizon Grupo Televisa is expected to generate 1.56 times less return on investment than ITV PLC. But when comparing it to its historical volatility, Grupo Televisa SAB is 1.22 times less risky than ITV PLC. It trades about 0.09 of its potential returns per unit of risk. ITV PLC ADR is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 740.00 in ITV PLC ADR on January 25, 2024 and sell it today you would earn a total of 147.00 from holding ITV PLC ADR or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Grupo Televisa SAB vs. ITV PLC ADR
Performance |
| Timeline |
| Grupo Televisa SAB |
| ITV PLC ADR |
Grupo Televisa and ITV PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and ITV PLC
The main advantage of trading using opposite Grupo Televisa and ITV PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, ITV PLC 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 ITV PLC will offset losses from the drop in ITV PLC's long position.| Grupo Televisa vs. Celsius Holdings | Grupo Televisa vs. Triton International Limited | Grupo Televisa vs. Alta Equipment Group | Grupo Televisa vs. Brandywine Realty Trust |
| ITV PLC vs. RTL Group SA | ITV PLC vs. ITV plc | ITV PLC vs. iHeartMedia | ITV PLC vs. Beasley Broadcast Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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