Correlation Between Grupo Televisa and Cibl

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

Diversification Opportunities for Grupo Televisa and Cibl

-0.54

Correlation Coefficient

Grupo Televisa  Cibl

Excellent diversification

The 3 months correlation between Grupo and Cibl is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Cibl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibl Inc 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 Cibl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibl Inc has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Cibl go up and down completely randomly.

Pair Corralation between Grupo Televisa and Cibl

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 1.93 times more return on investment than Cibl. However, Grupo Televisa is 1.93 times more volatile than Cibl Inc. It trades about 0.04 of its potential returns per unit of risk. Cibl Inc is currently generating about 0.05 per unit of risk. If you would invest  176.00  in Grupo Televisa SAB on December 26, 2024 and sell it today you would earn a total of  7.00  from holding Grupo Televisa SAB or generate 3.98% return on investment over 90 days.

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

Grupo Televisa SAB  vs.  Cibl Inc

Grupo Televisa SAB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Grupo Televisa may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cibl Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cibl Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental drivers, Cibl is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Grupo Televisa and Cibl

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

The idea behind Grupo Televisa SAB and Cibl Inc 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.