Correlation Between Chemours and Grupo Televisa

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

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

Diversification Opportunities for Chemours and Grupo Televisa

-0.05

Correlation Coefficient

Chemours  Grupo Televisa

Good diversification

The 3 months correlation between Chemours and Grupo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co 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 Chemours 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 Chemours Co 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 Chemours i.e., Chemours and Grupo Televisa go up and down completely randomly.

Pair Corralation between Chemours and Grupo Televisa

Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the Grupo Televisa. In addition to that, Chemours is 1.52 times more volatile than Grupo Televisa SAB. It trades about -0.08 of its total potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.04 per unit of volatility. If you would invest  38.00  in Grupo Televisa SAB on December 20, 2024 and sell it today you would lose (2.00) from holding Grupo Televisa SAB or give up 5.26% of portfolio value over 90 days.

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

Chemours Co  vs.  Grupo Televisa SAB

Chemours

Risk-Adjusted Performance

Very Weak

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

Grupo Televisa SAB

Risk-Adjusted Performance

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 nearly stable technical and fundamental indicators, Grupo Televisa is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Chemours and Grupo Televisa

The main advantage of trading using opposite Chemours and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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 Chemours Co 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.