Correlation Between Sinclair Broadcast and E W

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

By analyzing existing cross correlation between Sinclair Broadcast Group and E W Scripps, you can compare the effects of market volatilities on Sinclair Broadcast and E W 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 Sinclair Broadcast with a short position of E W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and E W.

Diversification Opportunities for Sinclair Broadcast and E W

0.48

Correlation Coefficient

Sinclair Broadcast  E W

Very weak diversification

The 3 months correlation between Sinclair and SSP is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps and Sinclair Broadcast 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 Sinclair Broadcast Group are associated (or correlated) with E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and E W go up and down completely randomly.

Pair Corralation between Sinclair Broadcast and E W

Given the investment horizon of 90 days Sinclair Broadcast is expected to generate 1.34 times less return on investment than E W. But when comparing it to its historical volatility, Sinclair Broadcast Group is 3.11 times less risky than E W. It trades about 0.25 of its potential returns per unit of risk. E W Scripps is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  179.00  in E W Scripps on September 12, 2024 and sell it today you would earn a total of  65.00  from holding E W Scripps or generate 36.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Sinclair Broadcast Group  vs.  E W Scripps

Sinclair Broadcast

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sinclair Broadcast Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Sinclair Broadcast demonstrated solid returns over the last few months and may actually be approaching a breakup point.

E W Scripps

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, E W reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sinclair Broadcast and E W

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

The idea behind Sinclair Broadcast Group and E W Scripps 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.