Correlation Between Tesla and Grupo Televisa

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

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

Diversification Opportunities for Tesla and Grupo Televisa

-0.59

Correlation Coefficient

Tesla  Grupo Televisa

Excellent diversification

The 3 months correlation between Tesla and Grupo is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc 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 Tesla 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 Tesla Inc 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 Tesla i.e., Tesla and Grupo Televisa go up and down completely randomly.

Pair Corralation between Tesla and Grupo Televisa

Given the investment horizon of 90 days Tesla Inc is expected to under-perform the Grupo Televisa. In addition to that, Tesla is 1.48 times more volatile than Grupo Televisa SAB. It trades about -0.07 of its total potential returns per unit of risk. Grupo Televisa SAB is currently generating about 0.0 per unit of volatility. If you would invest  200.00  in Grupo Televisa SAB on December 1, 2024 and sell it today you would lose (5.00) from holding Grupo Televisa SAB or give up 2.5% of portfolio value over 90 days.

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

Tesla Inc  vs.  Grupo Televisa SAB

Tesla Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tesla Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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. In spite of fairly stable basic indicators, Grupo Televisa is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Tesla and Grupo Televisa

The main advantage of trading using opposite Tesla and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla 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 Tesla Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..