Correlation Between HUYA and Sinclair Broadcast
Can any of the company-specific risk be diversified away by investing in both HUYA 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 HUYA and Sinclair Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUYA Inc and Sinclair Broadcast Group, you can compare the effects of market volatilities on HUYA 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 HUYA with a short position of Sinclair Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUYA and Sinclair Broadcast.
Diversification Opportunities for HUYA and Sinclair Broadcast
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUYA and Sinclair is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HUYA Inc and Sinclair Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Broadcast and HUYA 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 HUYA Inc 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 HUYA i.e., HUYA and Sinclair Broadcast go up and down completely randomly.
Pair Corralation between HUYA and Sinclair Broadcast
Given the investment horizon of 90 days HUYA Inc is expected to generate 1.9 times more return on investment than Sinclair Broadcast. However, HUYA is 1.9 times more volatile than Sinclair Broadcast Group. It trades about 0.25 of its potential returns per unit of risk. Sinclair Broadcast Group is currently generating about -0.26 per unit of risk. If you would invest 301.00 in HUYA Inc on November 8, 2024 and sell it today you would earn a total of 68.00 from holding HUYA Inc or generate 22.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUYA Inc vs. Sinclair Broadcast Group
Performance |
| Timeline |
| HUYA Inc |
| Sinclair Broadcast |
HUYA and Sinclair Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUYA and Sinclair Broadcast
The main advantage of trading using opposite HUYA and Sinclair Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUYA 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.| HUYA vs. Roku Inc | HUYA vs. Paramount Global Class | HUYA vs. Manchester United | HUYA vs. Warner Bros Discovery |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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