Correlation Between E W and Sinclair Broadcast

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

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

Diversification Opportunities for E W and Sinclair Broadcast

0.34

Correlation Coefficient

E W  Sinclair Broadcast

Weak diversification

The 3 months correlation between SSP and Sinclair is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding E W Scripps and Sinclair Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Broadcast and E W 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 E W Scripps 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 E W i.e., E W and Sinclair Broadcast go up and down completely randomly.

Pair Corralation between E W and Sinclair Broadcast

Considering the 90-day investment horizon E W Scripps is expected to generate 2.21 times more return on investment than Sinclair Broadcast. However, E W is 2.21 times more volatile than Sinclair Broadcast Group. It trades about 0.09 of its potential returns per unit of risk. Sinclair Broadcast Group is currently generating about -0.02 per unit of risk. If you would invest  245.00  in E W Scripps on May 2, 2025 and sell it today you would earn a total of  60.00  from holding E W Scripps or generate 24.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

E W Scripps  vs.  Sinclair Broadcast Group

E W Scripps

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, E W reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with E W and Sinclair Broadcast

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

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.