Correlation Between Grupo Televisa and American Healthcare

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

Diversification Opportunities for Grupo Televisa and American Healthcare

-0.82

Correlation Coefficient

Grupo Televisa  American Healthcare

Pay attention - limited upside

The 3 months correlation between Grupo and American is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, 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 American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and American Healthcare go up and down completely randomly.

Pair Corralation between Grupo Televisa and American Healthcare

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the American Healthcare. In addition to that, Grupo Televisa is 1.29 times more volatile than American Healthcare REIT,. It trades about -0.37 of its total potential returns per unit of risk. American Healthcare REIT, is currently generating about 0.18 per unit of volatility. If you would invest  2,493  in American Healthcare REIT, on October 7, 2024 and sell it today you would earn a total of  324.00  from holding American Healthcare REIT, or generate 13.0% return on investment over 90 days.

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

Grupo Televisa SAB  vs.  American Healthcare REIT,

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. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

American Healthcare REIT,

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Healthcare REIT, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical indicators, American Healthcare reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grupo Televisa and American Healthcare

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

The idea behind Grupo Televisa SAB and American Healthcare REIT, 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.