Correlation Between Specialty Liquid and Sinclair Broadcast

Can any of the company-specific risk be diversified away by investing in both Specialty Liquid 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 Specialty Liquid and Sinclair Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Specialty Liquid Transportation and Sinclair Broadcast Group, you can compare the effects of market volatilities on Specialty Liquid 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 Specialty Liquid with a short position of Sinclair Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Specialty Liquid and Sinclair Broadcast.

Diversification Opportunities for Specialty Liquid and Sinclair Broadcast

0.0

Correlation Coefficient

Specialty Liquid  Sinclair Broadcast

Pay attention - limited upside

The 3 months correlation between Specialty and Sinclair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Specialty Liquid Transportatio and Sinclair Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Broadcast and Specialty Liquid 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 Specialty Liquid Transportation 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 Specialty Liquid i.e., Specialty Liquid and Sinclair Broadcast go up and down completely randomly.

Pair Corralation between Specialty Liquid and Sinclair Broadcast

If you would invest  1,249  in Sinclair Broadcast Group on January 26, 2024 and sell it today you would earn a total of  25.00  from holding Sinclair Broadcast Group or generate 2.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Specialty Liquid Transportatio  vs.  Sinclair Broadcast Group

Specialty Liquid Tra

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Specialty Liquid Transportation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Specialty Liquid is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Sinclair Broadcast

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sinclair Broadcast Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in May 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Specialty Liquid and Sinclair Broadcast

The main advantage of trading using opposite Specialty Liquid and Sinclair Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Specialty Liquid 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.

The idea behind Specialty Liquid Transportation and Sinclair Broadcast Group 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.