Correlation Between Emerald Expositions and Sinclair Broadcast
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions 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 Emerald Expositions and Sinclair Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and Sinclair Broadcast Group, you can compare the effects of market volatilities on Emerald Expositions 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 Emerald Expositions with a short position of Sinclair Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Sinclair Broadcast.
Diversification Opportunities for Emerald Expositions and Sinclair Broadcast
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerald and Sinclair is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Sinclair Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Broadcast and Emerald Expositions 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 Emerald Expositions Events 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 Emerald Expositions i.e., Emerald Expositions and Sinclair Broadcast go up and down completely randomly.
Pair Corralation between Emerald Expositions and Sinclair Broadcast
Considering the 90-day investment horizon Emerald Expositions is expected to generate 1.09 times less return on investment than Sinclair Broadcast. But when comparing it to its historical volatility, Emerald Expositions Events is 1.23 times less risky than Sinclair Broadcast. It trades about 0.03 of its potential returns per unit of risk. Sinclair Broadcast Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,521 in Sinclair Broadcast Group on August 30, 2024 and sell it today you would earn a total of 284.00 from holding Sinclair Broadcast Group or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Emerald Expositions Events vs. Sinclair Broadcast Group
Performance |
| Timeline |
| Emerald Expositions |
| Sinclair Broadcast |
Emerald Expositions and Sinclair Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Sinclair Broadcast
The main advantage of trading using opposite Emerald Expositions and Sinclair Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions 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.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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