Correlation Between Scienjoy Holding and Grupo Televisa

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Can any of the company-specific risk be diversified away by investing in both Scienjoy Holding 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 Scienjoy Holding and Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scienjoy Holding Corp and Grupo Televisa SAB, you can compare the effects of market volatilities on Scienjoy Holding 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 Scienjoy Holding with a short position of Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scienjoy Holding and Grupo Televisa.

Diversification Opportunities for Scienjoy Holding and Grupo Televisa

-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Scienjoy and Grupo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp 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 Scienjoy Holding 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 Scienjoy Holding Corp 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 Scienjoy Holding i.e., Scienjoy Holding and Grupo Televisa go up and down completely randomly.

Pair Corralation between Scienjoy Holding and Grupo Televisa

Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to generate 2.36 times more return on investment than Grupo Televisa. However, Scienjoy Holding is 2.36 times more volatile than Grupo Televisa SAB. It trades about 0.01 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.05 per unit of risk. If you would invest  327.00  in Scienjoy Holding Corp on January 17, 2024 and sell it today you would lose (227.00) from holding Scienjoy Holding Corp or give up 69.42% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Scienjoy Holding Corp  vs.  Grupo Televisa SAB

 Performance 
       Timeline  
Scienjoy Holding Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Scienjoy Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward-looking indicators remain relatively steady which may send shares a bit higher in May 2024. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.
Grupo Televisa SAB 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Televisa SAB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Grupo Televisa showed solid returns over the last few months and may actually be approaching a breakup point.

Scienjoy Holding and Grupo Televisa Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Scienjoy Holding and Grupo Televisa

The main advantage of trading using opposite Scienjoy Holding and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding 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 Scienjoy Holding Corp 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

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