Correlation Between Grupo Televisa and Safe

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

Diversification Opportunities for Grupo Televisa and Safe

0.35

Correlation Coefficient

Grupo Televisa  Safe

Weak diversification

The 3 months correlation between Grupo and Safe is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Safe and Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe and Green 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 Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe and Green has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Safe go up and down completely randomly.

Pair Corralation between Grupo Televisa and Safe

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.29 times more return on investment than Safe. However, Grupo Televisa SAB is 3.49 times less risky than Safe. It trades about -0.03 of its potential returns per unit of risk. Safe and Green is currently generating about -0.05 per unit of risk. If you would invest  275.00  in Grupo Televisa SAB on September 12, 2024 and sell it today you would lose (81.00) from holding Grupo Televisa SAB or give up 29.45% of portfolio value over 90 days.

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

Grupo Televisa SAB  vs.  Safe and Green

Grupo Televisa SAB

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Grupo Televisa may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Safe and Green

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Safe and Green has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Grupo Televisa and Safe

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

The idea behind Grupo Televisa SAB and Safe and Green 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.