Correlation Between Grupo Televisa and Vivendi SA

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Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Vivendi 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 Vivendi 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 Vivendi SA, you can compare the effects of market volatilities on Grupo Televisa and Vivendi 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 Vivendi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Vivendi SA.

Diversification Opportunities for Grupo Televisa and Vivendi SA

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Grupo and Vivendi is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Vivendi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi 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 Vivendi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SA has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Vivendi SA go up and down completely randomly.

Pair Corralation between Grupo Televisa and Vivendi SA

Assuming the 90 days horizon Grupo Televisa SAB is expected to generate 1.22 times more return on investment than Vivendi SA. However, Grupo Televisa is 1.22 times more volatile than Vivendi SA. It trades about -0.01 of its potential returns per unit of risk. Vivendi SA is currently generating about -0.06 per unit of risk. If you would invest  58.00  in Grupo Televisa SAB on December 29, 2023 and sell it today you would lose (1.00) from holding Grupo Televisa SAB or give up 1.72% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Grupo Televisa SAB  vs.  Vivendi SA

 Performance 
       Timeline  
Grupo Televisa SAB 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Grupo Televisa SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Vivendi SA 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Vivendi SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Vivendi SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Grupo Televisa and Vivendi SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Televisa and Vivendi SA

The main advantage of trading using opposite Grupo Televisa and Vivendi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Vivendi 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 Vivendi SA will offset losses from the drop in Vivendi SA's long position.
The idea behind Grupo Televisa SAB and Vivendi SA 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.
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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