Correlation Between Scripps Networks and SINA

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Can any of the company-specific risk be diversified away by investing in both Scripps Networks and SINA 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 Scripps Networks and SINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scripps Networks Interactive and SINA Corporation, you can compare the effects of market volatilities on Scripps Networks and SINA 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 Scripps Networks with a short position of SINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scripps Networks and SINA.

Diversification Opportunities for Scripps Networks and SINA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Scripps and SINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scripps Networks Interactive and SINA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINA and Scripps Networks 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 Scripps Networks Interactive are associated (or correlated) with SINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINA has no effect on the direction of Scripps Networks i.e., Scripps Networks and SINA go up and down completely randomly.

Pair Corralation between Scripps Networks and SINA

If you would invest (100.00) in SINA Corporation on December 29, 2023 and sell it today you would earn a total of  100.00  from holding SINA Corporation or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Scripps Networks Interactive  vs.  SINA Corp.

 Performance 
       Timeline  
Scripps Networks Int 

Risk-Adjusted Performance

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Over the last 90 days Scripps Networks Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Scripps Networks is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
SINA 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days SINA Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SINA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Scripps Networks and SINA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Scripps Networks and SINA

The main advantage of trading using opposite Scripps Networks and SINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scripps Networks position performs unexpectedly, SINA 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 SINA will offset losses from the drop in SINA's long position.
The idea behind Scripps Networks Interactive and SINA Corporation 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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