Correlation Between Pintec Technology and Grupo Televisa

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

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

Diversification Opportunities for Pintec Technology and Grupo Televisa

-0.01

Correlation Coefficient

Pintec Technology  Grupo Televisa

Good diversification

The 3 months correlation between Pintec and Grupo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings 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 Pintec Technology 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 Pintec Technology Holdings 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 Pintec Technology i.e., Pintec Technology and Grupo Televisa go up and down completely randomly.

Pair Corralation between Pintec Technology and Grupo Televisa

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Grupo Televisa. In addition to that, Pintec Technology is 1.23 times more volatile than Grupo Televisa SAB. It trades about -0.02 of its total potential returns per unit of risk. Grupo Televisa SAB is currently generating about 0.02 per unit of volatility. If you would invest  196.00  in Grupo Televisa SAB on September 14, 2024 and sell it today you would earn a total of  1.00  from holding Grupo Televisa SAB or generate 0.51% return on investment over 90 days.

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

Pintec Technology Holdings  vs.  Grupo Televisa SAB

Pintec Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pintec Technology Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pintec Technology is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Grupo Televisa SAB

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Grupo Televisa is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Pintec Technology and Grupo Televisa

The main advantage of trading using opposite Pintec Technology and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology 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 Pintec Technology Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.