Correlation Between FTAI Aviation and Grupo Televisa

Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Grupo Televisa 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 FTAI Aviation and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FTAI Aviation Ltd and Grupo Televisa SAB, you can compare the effects of market volatilities on FTAI Aviation 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 FTAI Aviation with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Grupo Televisa.

Diversification Opportunities for FTAI Aviation and Grupo Televisa

0.64

Correlation Coefficient

FTAI Aviation  Grupo Televisa

Poor diversification

The 3 months correlation between FTAI and Grupo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd 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 FTAI Aviation 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 FTAI Aviation Ltd 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 FTAI Aviation i.e., FTAI Aviation and Grupo Televisa go up and down completely randomly.

Pair Corralation between FTAI Aviation and Grupo Televisa

Assuming the 90 days horizon FTAI Aviation is expected to generate 10.52 times less return on investment than Grupo Televisa. But when comparing it to its historical volatility, FTAI Aviation Ltd is 4.38 times less risky than Grupo Televisa. It trades about 0.07 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  173.00  in Grupo Televisa SAB on May 8, 2025 and sell it today you would earn a total of  72.00  from holding Grupo Televisa SAB or generate 41.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

FTAI Aviation Ltd  vs.  Grupo Televisa SAB

FTAI Aviation

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in FTAI Aviation Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, FTAI Aviation is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Grupo Televisa SAB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Grupo Televisa showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FTAI Aviation and Grupo Televisa

The main advantage of trading using opposite FTAI Aviation and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation 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 FTAI Aviation Ltd 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.