Correlation Between Grupo Televisa and SES SA
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and SES SA 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 SES SA 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 SES SA, you can compare the effects of market volatilities on Grupo Televisa and SES SA 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 SES SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and SES SA.
Diversification Opportunities for Grupo Televisa and SES SA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and SES is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and SES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES SA 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 SES SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES SA has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and SES SA go up and down completely randomly.
Pair Corralation between Grupo Televisa and SES SA
Assuming the 90 days horizon Grupo Televisa SAB is expected to generate 0.64 times more return on investment than SES SA. However, Grupo Televisa SAB is 1.57 times less risky than SES SA. It trades about 0.22 of its potential returns per unit of risk. SES SA is currently generating about -0.03 per unit of risk. If you would invest 57.00 in Grupo Televisa SAB on January 26, 2024 and sell it today you would earn a total of 8.00 from holding Grupo Televisa SAB or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Televisa SAB vs. SES SA
Performance |
| Timeline |
| Grupo Televisa SAB |
| SES SA |
Grupo Televisa and SES SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Televisa and SES SA
The main advantage of trading using opposite Grupo Televisa and SES SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, SES SA 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 SES SA will offset losses from the drop in SES SA's long position.| Grupo Televisa vs. Access Power Co | Grupo Televisa vs. Nw Tech Capital | Grupo Televisa vs. Radcom | Grupo Televisa vs. FingerMotion |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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