Correlation Between Helmerich and Grupo Televisa

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

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

Diversification Opportunities for Helmerich and Grupo Televisa

0.19

Correlation Coefficient

Helmerich  Grupo Televisa

Average diversification

The 3 months correlation between Helmerich and Grupo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne 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 Helmerich 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 Helmerich and Payne 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 Helmerich i.e., Helmerich and Grupo Televisa go up and down completely randomly.

Pair Corralation between Helmerich and Grupo Televisa

Allowing for the 90-day total investment horizon Helmerich is expected to generate 9.09 times less return on investment than Grupo Televisa. But when comparing it to its historical volatility, Helmerich and Payne is 1.63 times less risky than Grupo Televisa. It trades about 0.01 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  314.00  in Grupo Televisa SAB on February 19, 2024 and sell it today you would earn a total of  17.00  from holding Grupo Televisa SAB or generate 5.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Helmerich and Payne  vs.  Grupo Televisa SAB

Helmerich and Payne

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Helmerich and Payne has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Helmerich is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Grupo Televisa SAB

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 3 (%) 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 June 2024.

Pair Trading with Helmerich and Grupo Televisa

The main advantage of trading using opposite Helmerich and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helmerich 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 Helmerich and Payne 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.