Correlation Between Grupo Televisa and Cheesecake Factory

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

Diversification Opportunities for Grupo Televisa and Cheesecake Factory

0.83

Correlation Coefficient

Grupo Televisa  Cheesecake Factory

Very poor diversification

The 3 months correlation between Grupo and Cheesecake is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and The Cheesecake Factory in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Cheesecake Factory 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 Cheesecake Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Cheesecake Factory has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Cheesecake Factory go up and down completely randomly.

Pair Corralation between Grupo Televisa and Cheesecake Factory

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 1.61 times more return on investment than Cheesecake Factory. However, Grupo Televisa is 1.61 times more volatile than The Cheesecake Factory. It trades about 0.21 of its potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.18 per unit of risk. If you would invest  172.00  in Grupo Televisa SAB on May 7, 2025 and sell it today you would earn a total of  85.00  from holding Grupo Televisa SAB or generate 49.42% return on investment over 90 days.

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

Grupo Televisa SAB  vs.  The Cheesecake Factory

Grupo Televisa SAB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Grupo Televisa showed solid returns over the last few months and may actually be approaching a breakup point.

The Cheesecake Factory

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Cheesecake Factory are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward-looking signals, Cheesecake Factory exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grupo Televisa and Cheesecake Factory

The main advantage of trading using opposite Grupo Televisa and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Cheesecake Factory 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 Cheesecake Factory will offset losses from the drop in Cheesecake Factory's long position.

The idea behind Grupo Televisa SAB and The Cheesecake Factory 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.