Correlation Between Grupo Televisa and Magna International
Can any of the company-specific risk be diversified away by investing in both Grupo Televisa and Magna International 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 Magna International 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 Magna International, you can compare the effects of market volatilities on Grupo Televisa and Magna International 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 Magna International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Televisa and Magna International.
Diversification Opportunities for Grupo Televisa and Magna International
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Magna is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International 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 Magna International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna International has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Magna International go up and down completely randomly.
Pair Corralation between Grupo Televisa and Magna International
Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to under-perform the Magna International. In addition to that, Grupo Televisa is 1.67 times more volatile than Magna International. It trades about -0.09 of its total potential returns per unit of risk. Magna International is currently generating about -0.03 per unit of volatility. If you would invest 4,780 in Magna International on September 24, 2024 and sell it today you would lose (558.00) from holding Magna International or give up 11.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Televisa SAB vs. Magna International
Performance |
Timeline |
Grupo Televisa SAB |
Magna International |
Grupo Televisa and Magna International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Televisa and Magna International
The main advantage of trading using opposite Grupo Televisa and Magna International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Televisa position performs unexpectedly, Magna International 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 Magna International will offset losses from the drop in Magna International's long position.Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. Shenandoah Telecommunications Co |
Magna International vs. Ford Motor | Magna International vs. General Motors | Magna International vs. Goodyear Tire Rubber | Magna International vs. Li Auto |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |