Correlation Between Sinclair Broadcast and LAir Liquide
Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and LAir Liquide 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 LAir Liquide 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 LAir Liquide SA, you can compare the effects of market volatilities on Sinclair Broadcast and LAir Liquide 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 LAir Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and LAir Liquide.
Diversification Opportunities for Sinclair Broadcast and LAir Liquide
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinclair and LAir is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and LAir Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAir Liquide SA 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 LAir Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAir Liquide SA has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and LAir Liquide go up and down completely randomly.
Pair Corralation between Sinclair Broadcast and LAir Liquide
Given the investment horizon of 90 days Sinclair Broadcast Group is expected to generate 2.45 times more return on investment than LAir Liquide. However, Sinclair Broadcast is 2.45 times more volatile than LAir Liquide SA. It trades about 0.06 of its potential returns per unit of risk. LAir Liquide SA is currently generating about -0.12 per unit of risk. If you would invest 1,331 in Sinclair Broadcast Group on September 9, 2025 and sell it today you would earn a total of 135.00 from holding Sinclair Broadcast Group or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinclair Broadcast Group vs. LAir Liquide SA
Performance |
| Timeline |
| Sinclair Broadcast |
| LAir Liquide SA |
Sinclair Broadcast and LAir Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinclair Broadcast and LAir Liquide
The main advantage of trading using opposite Sinclair Broadcast and LAir Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, LAir Liquide 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 LAir Liquide will offset losses from the drop in LAir Liquide's long position.| Sinclair Broadcast vs. Shutterstock | Sinclair Broadcast vs. Deluxe | Sinclair Broadcast vs. Cable One | Sinclair Broadcast vs. Getty Images Holdings |
| LAir Liquide vs. Zijin Mining Group | LAir Liquide vs. Rio Tinto Group | LAir Liquide vs. Givaudan SA ADR | LAir Liquide vs. Givaudan SA |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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