Correlation Between TAISEM and Grupo Televisa

Can any of the company-specific risk be diversified away by investing in both TAISEM and Grupo Televisa 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 TAISEM and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TAISEM 4125 22 APR 29 and Grupo Televisa SAB, you can compare the effects of market volatilities on TAISEM and Grupo Televisa 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 TAISEM with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAISEM and Grupo Televisa.

Diversification Opportunities for TAISEM and Grupo Televisa

-0.11

Correlation Coefficient

TAISEM  Grupo Televisa

Good diversification

The 3 months correlation between TAISEM and Grupo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding TAISEM 4125 22 APR 29 and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB and TAISEM 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 TAISEM 4125 22 APR 29 are associated (or correlated) with Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of TAISEM i.e., TAISEM and Grupo Televisa go up and down completely randomly.

Pair Corralation between TAISEM and Grupo Televisa

Assuming the 90 days trading horizon TAISEM 4125 22 APR 29 is expected to under-perform the Grupo Televisa. But the bond apears to be less risky and, when comparing its historical volatility, TAISEM 4125 22 APR 29 is 3.39 times less risky than Grupo Televisa. The bond trades about -0.03 of its potential returns per unit of risk. The Grupo Televisa SAB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  200.00  in Grupo Televisa SAB on December 2, 2024 and sell it today you would lose (5.00) from holding Grupo Televisa SAB or give up 2.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	55.74%
Values	Daily Returns

TAISEM 4125 22 APR 29  vs.  Grupo Televisa SAB

TAISEM 4125 22

Risk-Adjusted Performance

Very Weak

Over the last 90 days TAISEM 4125 22 APR 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TAISEM is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with TAISEM and Grupo Televisa

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

The idea behind TAISEM 4125 22 APR 29 and Grupo Televisa SAB 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.