Correlation Between Sinclair Broadcast and AG Mortgage
Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and AG Mortgage 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 AG Mortgage 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 AG Mortgage Investment, you can compare the effects of market volatilities on Sinclair Broadcast and AG Mortgage 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 AG Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and AG Mortgage.
Diversification Opportunities for Sinclair Broadcast and AG Mortgage
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinclair and MITN is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and AG Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Mortgage Investment 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 AG Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Mortgage Investment has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and AG Mortgage go up and down completely randomly.
Pair Corralation between Sinclair Broadcast and AG Mortgage
Given the investment horizon of 90 days Sinclair Broadcast Group is expected to under-perform the AG Mortgage. In addition to that, Sinclair Broadcast is 11.42 times more volatile than AG Mortgage Investment. It trades about -0.02 of its total potential returns per unit of risk. AG Mortgage Investment is currently generating about 0.09 per unit of volatility. If you would invest 2,497 in AG Mortgage Investment on July 27, 2025 and sell it today you would earn a total of 44.00 from holding AG Mortgage Investment or generate 1.76% 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. AG Mortgage Investment
Performance |
| Timeline |
| Sinclair Broadcast |
| AG Mortgage Investment |
Sinclair Broadcast and AG Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinclair Broadcast and AG Mortgage
The main advantage of trading using opposite Sinclair Broadcast and AG Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, AG Mortgage 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 AG Mortgage will offset losses from the drop in AG Mortgage's long position.| Sinclair Broadcast vs. Shutterstock | Sinclair Broadcast vs. Deluxe | Sinclair Broadcast vs. Cable One | Sinclair Broadcast vs. Getty Images Holdings |
| AG Mortgage vs. AG Mortgage Investment | AG Mortgage vs. Nexpoint Real Estate | AG Mortgage vs. Angel Oak Mortgage | AG Mortgage vs. Ares Commercial Real |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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