Correlation Between Sonic Healthcare and Fresenius
Can any of the company-specific risk be diversified away by investing in both Sonic Healthcare and Fresenius 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 Sonic Healthcare and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonic Healthcare Limited and Fresenius SE Co, you can compare the effects of market volatilities on Sonic Healthcare and Fresenius 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 Sonic Healthcare with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Healthcare and Fresenius.
Diversification Opportunities for Sonic Healthcare and Fresenius
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sonic and Fresenius is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Healthcare Limited and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Sonic Healthcare 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 Sonic Healthcare Limited are associated (or correlated) with Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Sonic Healthcare i.e., Sonic Healthcare and Fresenius go up and down completely randomly.
Pair Corralation between Sonic Healthcare and Fresenius
Assuming the 90 days horizon Sonic Healthcare is expected to generate 3.84 times less return on investment than Fresenius. In addition to that, Sonic Healthcare is 1.19 times more volatile than Fresenius SE Co. It trades about 0.01 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about 0.05 per unit of volatility. If you would invest 2,517 in Fresenius SE Co on September 14, 2024 and sell it today you would earn a total of 962.00 from holding Fresenius SE Co or generate 38.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sonic Healthcare Limited vs. Fresenius SE Co
Performance |
| Timeline |
| Sonic Healthcare |
| Fresenius SE |
Sonic Healthcare and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonic Healthcare and Fresenius
The main advantage of trading using opposite Sonic Healthcare and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonic Healthcare position performs unexpectedly, Fresenius 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 Fresenius will offset losses from the drop in Fresenius' long position.| Sonic Healthcare vs. JD HEALTH INTL | Sonic Healthcare vs. Fresenius SE Co | Sonic Healthcare vs. Fresenius Medical Care | Sonic Healthcare vs. Option Care Health |
| Fresenius vs. JD HEALTH INTL | Fresenius vs. Fresenius Medical Care | Fresenius vs. Sonic Healthcare Limited | Fresenius vs. Option Care Health |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |