Correlation Between Grupo Televisa and Paltalk

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

Diversification Opportunities for Grupo Televisa and Paltalk

0.36

Correlation Coefficient

Grupo Televisa  Paltalk

Weak diversification

The 3 months correlation between Grupo and Paltalk is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Televisa SAB and Paltalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paltalk 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 Paltalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paltalk has no effect on the direction of Grupo Televisa i.e., Grupo Televisa and Paltalk go up and down completely randomly.

Pair Corralation between Grupo Televisa and Paltalk

Allowing for the 90-day total investment horizon Grupo Televisa SAB is expected to generate 0.55 times more return on investment than Paltalk. However, Grupo Televisa SAB is 1.81 times less risky than Paltalk. It trades about -0.06 of its potential returns per unit of risk. Paltalk is currently generating about -0.07 per unit of risk. If you would invest  268.00  in Grupo Televisa SAB on September 15, 2024 and sell it today you would lose (71.00) from holding Grupo Televisa SAB or give up 26.49% 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.  Paltalk

Grupo Televisa SAB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Paltalk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paltalk has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Grupo Televisa and Paltalk

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

The idea behind Grupo Televisa SAB and Paltalk 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.