Correlation Between Network18 Media and SINCLAIRS HOTELS

Can any of the company-specific risk be diversified away by investing in both Network18 Media and SINCLAIRS HOTELS 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 Network18 Media and SINCLAIRS HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Network18 Media Investments and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on Network18 Media and SINCLAIRS HOTELS 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 Network18 Media with a short position of SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network18 Media and SINCLAIRS HOTELS.

Diversification Opportunities for Network18 Media and SINCLAIRS HOTELS

0.31

Correlation Coefficient

Network18 Media  SINCLAIRS HOTELS

Weak diversification

The 3 months correlation between Network18 and SINCLAIRS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Network18 Media Investments and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD and Network18 Media 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 Network18 Media Investments are associated (or correlated) with SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of Network18 Media i.e., Network18 Media and SINCLAIRS HOTELS go up and down completely randomly.

Pair Corralation between Network18 Media and SINCLAIRS HOTELS

Assuming the 90 days trading horizon Network18 Media Investments is expected to generate 1.2 times more return on investment than SINCLAIRS HOTELS. However, Network18 Media is 1.2 times more volatile than SINCLAIRS HOTELS ORD. It trades about 0.16 of its potential returns per unit of risk. SINCLAIRS HOTELS ORD is currently generating about 0.04 per unit of risk. If you would invest  4,511  in Network18 Media Investments on April 21, 2025 and sell it today you would earn a total of  1,612  from holding Network18 Media Investments or generate 35.73% return on investment over 90 days.

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

Network18 Media Investments  vs.  SINCLAIRS HOTELS ORD

Network18 Media Inve

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Network18 Media Investments are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Network18 Media disclosed solid returns over the last few months and may actually be approaching a breakup point.

SINCLAIRS HOTELS ORD

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINCLAIRS HOTELS ORD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, SINCLAIRS HOTELS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Network18 Media and SINCLAIRS HOTELS

The main advantage of trading using opposite Network18 Media and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network18 Media position performs unexpectedly, SINCLAIRS HOTELS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's long position.

The idea behind Network18 Media Investments and SINCLAIRS HOTELS ORD 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.