Correlation Between Sinclair Broadcast and Matthews International
Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and Matthews International 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 Matthews International 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 Matthews International, you can compare the effects of market volatilities on Sinclair Broadcast and Matthews International 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 Matthews International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and Matthews International.
Diversification Opportunities for Sinclair Broadcast and Matthews International
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinclair and Matthews is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and Matthews International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews International 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 Matthews International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews International has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and Matthews International go up and down completely randomly.
Pair Corralation between Sinclair Broadcast and Matthews International
Given the investment horizon of 90 days Sinclair Broadcast Group is expected to generate 1.47 times more return on investment than Matthews International. However, Sinclair Broadcast is 1.47 times more volatile than Matthews International. It trades about 0.04 of its potential returns per unit of risk. Matthews International is currently generating about 0.01 per unit of risk. If you would invest 1,371 in Sinclair Broadcast Group on September 6, 2025 and sell it today you would earn a total of 61.00 from holding Sinclair Broadcast Group or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinclair Broadcast Group vs. Matthews International
Performance |
| Timeline |
| Sinclair Broadcast |
| Matthews International |
Sinclair Broadcast and Matthews International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinclair Broadcast and Matthews International
The main advantage of trading using opposite Sinclair Broadcast and Matthews International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, Matthews International 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 Matthews International will offset losses from the drop in Matthews International's long position.| Sinclair Broadcast vs. Greentown Management Holdings | Sinclair Broadcast vs. Tsingtao Brewery | Sinclair Broadcast vs. Monster Beverage Corp | Sinclair Broadcast vs. High Performance Beverages |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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