Correlation Between McDonalds and Sinclair
Specify exactly 2 symbols:
By analyzing existing cross correlation between McDonalds and Sinclair Television Group, you can compare the effects of market volatilities on McDonalds and Sinclair 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 McDonalds with a short position of Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and Sinclair.
Diversification Opportunities for McDonalds and Sinclair
Excellent diversification
The 3 months correlation between McDonalds and Sinclair is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Sinclair Television Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Television and McDonalds 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 McDonalds are associated (or correlated) with Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinclair Television has no effect on the direction of McDonalds i.e., McDonalds and Sinclair go up and down completely randomly.
Pair Corralation between McDonalds and Sinclair
Considering the 90-day investment horizon McDonalds is expected to generate 1.03 times more return on investment than Sinclair. However, McDonalds is 1.03 times more volatile than Sinclair Television Group. It trades about -0.03 of its potential returns per unit of risk. Sinclair Television Group is currently generating about -0.16 per unit of risk. If you would invest 29,261 in McDonalds on August 26, 2024 and sell it today you would lose (233.00) from holding McDonalds or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
McDonalds vs. Sinclair Television Group
Performance |
| Timeline |
| McDonalds |
| Sinclair Television |
McDonalds and Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and Sinclair
The main advantage of trading using opposite McDonalds and Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, Sinclair 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 will offset losses from the drop in Sinclair's long position.| McDonalds vs. Chipotle Mexican Grill | McDonalds vs. Dutch Bros | McDonalds vs. Dominos Pizza | McDonalds vs. Yum Brands |
| Sinclair vs. Planet Fitness | Sinclair vs. Sealed Air | Sinclair vs. Playtika Holding Corp | Sinclair vs. Hawkins |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |