Correlation Between Grupo Televisa and Simon Property
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on Grupo Televisa and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Simon Property.
Diversification Opportunities for Grupo Televisa and Simon Property
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Simon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Simon Property go up and down completely randomly.
Pair Corralation between Grupo Televisa and Simon Property
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Simon Property. In addition to that, Grupo Televisa is 2.74 times more volatile than Simon Property Group. It trades about -0.14 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.06 per unit of volatility. If you would invest 16,451 in Simon Property Group on September 26, 2024 and sell it today you would earn a total of 687.00 from holding Simon Property Group or generate 4.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Televisa SAB vs. Simon Property Group
Performance |
Timeline |
Grupo Televisa SAB |
Simon Property Group |
Grupo Televisa and Simon Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Televisa and Simon Property
The main advantage of trading using opposite Grupo Televisa and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.Grupo Televisa vs. Orange SA ADR | Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs |
Simon Property vs. Rithm Property Trust | Simon Property vs. Site Centers Corp | Simon Property vs. Retail Opportunity Investments | Simon Property vs. Inventrust Properties Corp |
Check out your portfolio center.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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