Correlation Between Sinclair Broadcast and Manchester United
Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and Manchester United 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 Manchester United 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 Manchester United, you can compare the effects of market volatilities on Sinclair Broadcast and Manchester United 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 Manchester United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and Manchester United.
Diversification Opportunities for Sinclair Broadcast and Manchester United
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sinclair and Manchester is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and Manchester United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manchester United 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 Manchester United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manchester United has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and Manchester United go up and down completely randomly.
Pair Corralation between Sinclair Broadcast and Manchester United
Given the investment horizon of 90 days Sinclair Broadcast Group is expected to generate 1.38 times more return on investment than Manchester United. However, Sinclair Broadcast is 1.38 times more volatile than Manchester United. It trades about 0.03 of its potential returns per unit of risk. Manchester United is currently generating about -0.01 per unit of risk. If you would invest 1,544 in Sinclair Broadcast Group on August 31, 2024 and sell it today you would earn a total of 261.00 from holding Sinclair Broadcast Group or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinclair Broadcast Group vs. Manchester United
Performance |
| Timeline |
| Sinclair Broadcast |
| Manchester United |
Sinclair Broadcast and Manchester United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinclair Broadcast and Manchester United
The main advantage of trading using opposite Sinclair Broadcast and Manchester United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, Manchester United 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 Manchester United will offset losses from the drop in Manchester United's long position.| Sinclair Broadcast vs. News Corp B | Sinclair Broadcast vs. Fox Corp Class | Sinclair Broadcast vs. AMC Networks | Sinclair Broadcast vs. Marcus |
| Manchester United vs. Roku Inc | Manchester United vs. AMC Entertainment Holdings | Manchester United vs. Paramount Global Class | Manchester United vs. Warner Bros Discovery |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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