Correlation Between Grupo Televisa and J Long

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

Diversification Opportunities for Grupo Televisa and J Long

0.63

Correlation Coefficient

Grupo Televisa  J Long

Poor diversification

The 3 months correlation between Grupo and J Long is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and J Long Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Long Group 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 J Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Long Group has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and J Long go up and down completely randomly.

Pair Corralation between Grupo Televisa and J Long

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the J Long. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Televisa SAB is 4.22 times less risky than J Long. The stock trades about -0.42 of its potential returns per unit of risk. The J Long Group Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  281.00  in J Long Group Limited on September 22, 2024 and sell it today you would earn a total of  7.00  from holding J Long Group Limited or generate 2.49% return on investment over 90 days.

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

Grupo Televisa SAB  vs.  J Long Group Limited

Grupo Televisa SAB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grupo Televisa SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

J Long Group

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days J Long Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, J Long is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Grupo Televisa and J Long

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

The idea behind Grupo Televisa SAB and J Long Group Limited 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.