Correlation Between Sonic Healthcare and Dicker Data
Can any of the company-specific risk be diversified away by investing in both Sonic Healthcare and Dicker Data 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 Dicker Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonic Healthcare and Dicker Data, you can compare the effects of market volatilities on Sonic Healthcare and Dicker Data 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 Dicker Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Healthcare and Dicker Data.
Diversification Opportunities for Sonic Healthcare and Dicker Data
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sonic and Dicker is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Healthcare and Dicker Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicker Data 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 Dicker Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dicker Data has no effect on the direction of Sonic Healthcare i.e., Sonic Healthcare and Dicker Data go up and down completely randomly.
Pair Corralation between Sonic Healthcare and Dicker Data
Assuming the 90 days trading horizon Sonic Healthcare is expected to generate 0.69 times more return on investment than Dicker Data. However, Sonic Healthcare is 1.46 times less risky than Dicker Data. It trades about 0.11 of its potential returns per unit of risk. Dicker Data is currently generating about -0.02 per unit of risk. If you would invest 2,393 in Sonic Healthcare on August 25, 2024 and sell it today you would earn a total of 404.00 from holding Sonic Healthcare or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonic Healthcare vs. Dicker Data
Performance |
| Timeline |
| Sonic Healthcare |
| Dicker Data |
Sonic Healthcare and Dicker Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonic Healthcare and Dicker Data
The main advantage of trading using opposite Sonic Healthcare and Dicker Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonic Healthcare position performs unexpectedly, Dicker Data 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 Dicker Data will offset losses from the drop in Dicker Data's long position.| Sonic Healthcare vs. Diversified United Investment | Sonic Healthcare vs. Australian United Investment | Sonic Healthcare vs. EROAD | Sonic Healthcare vs. TPG Telecom |
| Dicker Data vs. Greenvale Energy | Dicker Data vs. Summit Resources Limited | Dicker Data vs. Ecofibre | Dicker Data vs. iShares Global Healthcare |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |