Correlation Between Advantage Solutions and Sinclair Broadcast
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Sinclair Broadcast 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 Advantage Solutions and Sinclair Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Sinclair Broadcast Group, you can compare the effects of market volatilities on Advantage Solutions and Sinclair Broadcast 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 Advantage Solutions with a short position of Sinclair Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Sinclair Broadcast.
Diversification Opportunities for Advantage Solutions and Sinclair Broadcast
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advantage and Sinclair is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Sinclair Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Broadcast and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Sinclair Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinclair Broadcast has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Sinclair Broadcast go up and down completely randomly.
Pair Corralation between Advantage Solutions and Sinclair Broadcast
Considering the 90-day investment horizon Advantage Solutions is expected to generate 0.93 times more return on investment than Sinclair Broadcast. However, Advantage Solutions is 1.08 times less risky than Sinclair Broadcast. It trades about 0.04 of its potential returns per unit of risk. Sinclair Broadcast Group is currently generating about 0.03 per unit of risk. If you would invest 217.00 in Advantage Solutions on August 30, 2024 and sell it today you would earn a total of 138.00 from holding Advantage Solutions or generate 63.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. Sinclair Broadcast Group
Performance |
| Timeline |
| Advantage Solutions |
| Sinclair Broadcast |
Advantage Solutions and Sinclair Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Sinclair Broadcast
The main advantage of trading using opposite Advantage Solutions and Sinclair Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Sinclair Broadcast 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 Sinclair Broadcast will offset losses from the drop in Sinclair Broadcast's long position.| Advantage Solutions vs. Criteo Sa | Advantage Solutions vs. Deluxe | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex |
| Sinclair Broadcast vs. News Corp A | Sinclair Broadcast vs. Liberty Media | Sinclair Broadcast vs. Liberty Media | Sinclair Broadcast vs. AMC Networks |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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