Correlation Between Sonic Healthcare and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Sonic Healthcare and Accent Resources 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 Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonic Healthcare and Accent Resources NL, you can compare the effects of market volatilities on Sonic Healthcare and Accent Resources 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 Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Healthcare and Accent Resources.
Diversification Opportunities for Sonic Healthcare and Accent Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sonic and Accent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Healthcare and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources 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 are associated (or correlated) with Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Sonic Healthcare i.e., Sonic Healthcare and Accent Resources go up and down completely randomly.
Pair Corralation between Sonic Healthcare and Accent Resources
Assuming the 90 days trading horizon Sonic Healthcare is expected to generate 0.29 times more return on investment than Accent Resources. However, Sonic Healthcare is 3.48 times less risky than Accent Resources. It trades about 0.01 of its potential returns per unit of risk. Accent Resources NL is currently generating about -0.02 per unit of risk. If you would invest 2,824 in Sonic Healthcare on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Sonic Healthcare or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonic Healthcare vs. Accent Resources NL
Performance |
| Timeline |
| Sonic Healthcare |
| Accent Resources |
Sonic Healthcare and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonic Healthcare and Accent Resources
The main advantage of trading using opposite Sonic Healthcare and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonic Healthcare position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Sonic Healthcare vs. CSL | Sonic Healthcare vs. Tamawood | Sonic Healthcare vs. Cochlear | Sonic Healthcare vs. Rea Group |
| Accent Resources vs. Chalice Mining Limited | Accent Resources vs. M3 Mining | Accent Resources vs. Actinogen Medical | Accent Resources vs. Medical Developments International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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