Correlation Between Grupo Televisa and Citi Trends

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

Diversification Opportunities for Grupo Televisa and Citi Trends

0.21

Correlation Coefficient

Grupo Televisa  Citi Trends

Modest diversification

The 3 months correlation between Grupo and Citi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends 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 Citi Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citi Trends has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Citi Trends go up and down completely randomly.

Pair Corralation between Grupo Televisa and Citi Trends

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.79 times more return on investment than Citi Trends. However, Grupo Televisa SAB is 1.27 times less risky than Citi Trends. It trades about -0.02 of its potential returns per unit of risk. Citi Trends is currently generating about -0.07 per unit of risk. If you would invest  177.00  in Grupo Televisa SAB on December 23, 2024 and sell it today you would lose (9.00) from holding Grupo Televisa SAB or give up 5.08% of portfolio value over 90 days.

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

Grupo Televisa SAB  vs.  Citi Trends

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.

Citi Trends

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citi Trends has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Grupo Televisa and Citi Trends

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

The idea behind Grupo Televisa SAB and Citi Trends 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.

Check out your portfolio center.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.