Correlation Between Boston Omaha and Grupo Televisa

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

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

Diversification Opportunities for Boston Omaha and Grupo Televisa

0.64

Correlation Coefficient

Boston Omaha  Grupo Televisa

Poor diversification

The 3 months correlation between Boston and Grupo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp 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 Boston Omaha 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 Boston Omaha Corp 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 Boston Omaha i.e., Boston Omaha and Grupo Televisa go up and down completely randomly.

Pair Corralation between Boston Omaha and Grupo Televisa

Considering the 90-day investment horizon Boston Omaha Corp is expected to generate 0.38 times more return on investment than Grupo Televisa. However, Boston Omaha Corp is 2.63 times less risky than Grupo Televisa. It trades about -0.04 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.09 per unit of risk. If you would invest  1,531  in Boston Omaha Corp on October 25, 2024 and sell it today you would lose (83.00) from holding Boston Omaha Corp or give up 5.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Boston Omaha Corp  vs.  Grupo Televisa SAB

Boston Omaha Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boston Omaha Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Boston Omaha is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

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. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Boston Omaha and Grupo Televisa

The main advantage of trading using opposite Boston Omaha and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha 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 Boston Omaha Corp 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.