Correlation Between Sinclair Broadcast and Gannett

Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and Gannett 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 Gannett 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 Gannett Co, you can compare the effects of market volatilities on Sinclair Broadcast and Gannett 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 Gannett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and Gannett.

Diversification Opportunities for Sinclair Broadcast and Gannett

0.36

Correlation Coefficient

Sinclair Broadcast  Gannett

Weak diversification

The 3 months correlation between Sinclair and Gannett is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and Gannett Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gannett 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 Gannett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gannett has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and Gannett go up and down completely randomly.

Pair Corralation between Sinclair Broadcast and Gannett

Given the investment horizon of 90 days Sinclair Broadcast Group is expected to under-perform the Gannett. But the stock apears to be less risky and, when comparing its historical volatility, Sinclair Broadcast Group is 1.03 times less risky than Gannett. The stock trades about -0.04 of its potential returns per unit of risk. The Gannett Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  331.00  in Gannett Co on May 7, 2025 and sell it today you would earn a total of  86.00  from holding Gannett Co or generate 25.98% 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.  Gannett Co

Sinclair Broadcast

Risk-Adjusted Performance

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 fairly strong technical and fundamental indicators, Sinclair Broadcast is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Gannett

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gannett Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Gannett demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sinclair Broadcast and Gannett

The main advantage of trading using opposite Sinclair Broadcast and Gannett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, Gannett 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 Gannett will offset losses from the drop in Gannett's long position.

The idea behind Sinclair Broadcast Group and Gannett Co 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.