Correlation Between Sinclair Broadcast and Fox Corp

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Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and Fox Corp 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 Fox Corp 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 Fox Corp Class, you can compare the effects of market volatilities on Sinclair Broadcast and Fox Corp 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 Fox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and Fox Corp.

Diversification Opportunities for Sinclair Broadcast and Fox Corp

SinclairFoxDiversified AwaySinclairFoxDiversified Away100%
-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Sinclair and Fox is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and Fox Corp Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fox Corp Class 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 Fox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fox Corp Class has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and Fox Corp go up and down completely randomly.

Pair Corralation between Sinclair Broadcast and Fox Corp

Given the investment horizon of 90 days Sinclair Broadcast Group is expected to under-perform the Fox Corp. In addition to that, Sinclair Broadcast is 1.68 times more volatile than Fox Corp Class. It trades about -0.08 of its total potential returns per unit of risk. Fox Corp Class is currently generating about 0.24 per unit of volatility. If you would invest  4,953  in Fox Corp Class on November 20, 2024 and sell it today you would earn a total of  610.00  from holding Fox Corp Class or generate 12.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Sinclair Broadcast Group  vs.  Fox Corp Class

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505101520
JavaScript chart by amCharts 3.21.15SBGI FOXA
       Timeline  
Sinclair Broadcast 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Sinclair Broadcast Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1414.51515.51616.51717.51818.5
Fox Corp Class 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fox Corp Class are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Fox Corp sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb464850525456

Sinclair Broadcast and Fox Corp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.68-2.75-1.83-0.91-0.01480.871.762.653.53 0.050.100.15
JavaScript chart by amCharts 3.21.15SBGI FOXA
       Returns  

Pair Trading with Sinclair Broadcast and Fox Corp

The main advantage of trading using opposite Sinclair Broadcast and Fox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, Fox Corp 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 Fox Corp will offset losses from the drop in Fox Corp's long position.
The idea behind Sinclair Broadcast Group and Fox Corp Class 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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