Correlation Between Grupo Televisa and Criteo Sa

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

Diversification Opportunities for Grupo Televisa and Criteo Sa

0.48

Correlation Coefficient

Grupo Televisa  Criteo Sa

Very weak diversification

The 3 months correlation between Grupo and Criteo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa 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 Criteo Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Criteo Sa has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Criteo Sa go up and down completely randomly.

Pair Corralation between Grupo Televisa and Criteo Sa

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.95 times more return on investment than Criteo Sa. However, Grupo Televisa SAB is 1.05 times less risky than Criteo Sa. It trades about 0.05 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.02 per unit of risk. If you would invest  169.00  in Grupo Televisa SAB on December 28, 2024 and sell it today you would earn a total of  12.00  from holding Grupo Televisa SAB or generate 7.1% return on investment over 90 days.

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

Grupo Televisa SAB  vs.  Criteo Sa

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 4 (%) 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.

Criteo Sa

Risk-Adjusted Performance

Very Weak

Over the last 90 days Criteo Sa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Criteo Sa is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Grupo Televisa and Criteo Sa

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

The idea behind Grupo Televisa SAB and Criteo Sa 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.