Sonic Healthcare Ltd Stock Volatility
| SKHHY Stock | USD 18.60 0.25 1.36% |
At this stage we consider Sonic Pink Sheet to be not too volatile. Sonic Healthcare owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0095, which indicates the firm had a 0.0095% return per unit of risk over the last 3 months. We have found thirty technical indicators for Sonic Healthcare Ltd, which you can use to evaluate the volatility of the company. Please validate Sonic Healthcare's Semi Deviation of 1.85, coefficient of variation of 4715.81, and Risk Adjusted Performance of 0.0226 to confirm if the risk estimate we provide is consistent with the expected return of 0.0201%. Key indicators related to Sonic Healthcare's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Sonic Healthcare Pink Sheet volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Sonic daily returns, and it is calculated using variance and standard deviation. We also use Sonic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sonic Healthcare volatility.
Sonic |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sonic Healthcare can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sonic Healthcare at lower prices. For example, an investor can purchase Sonic stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Sonic Healthcare's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Sonic Pink Sheet
| 0.62 | A | Agilent Technologies Earnings Call This Week | PairCorr |
Moving against Sonic Pink Sheet
| 0.46 | MUFG | Mitsubishi UFJ Financial | PairCorr |
| 0.41 | MBFJF | Mitsubishi UFJ Financial | PairCorr |
| 0.4 | JPHLF | Japan Post Holdings | PairCorr |
| 0.37 | MFG | Mizuho Financial | PairCorr |
| 0.31 | SMFNF | Sumitomo Mitsui Financial Normal Trading | PairCorr |
Sonic Healthcare Market Sensitivity And Downside Risk
Sonic Healthcare's beta coefficient measures the volatility of Sonic pink sheet compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Sonic pink sheet's returns against your selected market. In other words, Sonic Healthcare's beta of 0.35 provides an investor with an approximation of how much risk Sonic Healthcare pink sheet can potentially add to one of your existing portfolios. Sonic Healthcare Ltd has relatively low volatility with skewness of 0.6 and kurtosis of 1.72. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sonic Healthcare's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sonic Healthcare's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Sonic Healthcare Demand TrendCheck current 90 days Sonic Healthcare correlation with market (Dow Jones Industrial)Sonic Beta |
Sonic standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.11 |
It is essential to understand the difference between upside risk (as represented by Sonic Healthcare's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sonic Healthcare's daily returns or price. Since the actual investment returns on holding a position in sonic pink sheet tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Sonic Healthcare.
Sonic Healthcare Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Sonic Healthcare pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sonic Healthcare's price changes. Investors will then calculate the volatility of Sonic Healthcare's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Sonic Healthcare's volatility:
Historical Volatility
This type of pink sheet volatility measures Sonic Healthcare's fluctuations based on previous trends. It's commonly used to predict Sonic Healthcare's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Sonic Healthcare's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sonic Healthcare's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Sonic Healthcare Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Sonic Healthcare Projected Return Density Against Market
Assuming the 90 days horizon Sonic Healthcare has a beta of 0.3491 . This usually implies as returns on the market go up, Sonic Healthcare average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Sonic Healthcare Ltd will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sonic Healthcare or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sonic Healthcare's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sonic pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Sonic Healthcare Ltd has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Sonic Healthcare Price Volatility?
Several factors can influence a pink sheet's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Sonic Healthcare Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Sonic Healthcare is 10501.6. The daily returns are distributed with a variance of 4.45 and standard deviation of 2.11. The mean deviation of Sonic Healthcare Ltd is currently at 1.56. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.0076 | |
β | Beta against Dow Jones | 0.35 | |
σ | Overall volatility | 2.11 | |
Ir | Information ratio | -0.04 |
Sonic Healthcare Pink Sheet Return Volatility
Sonic Healthcare historical daily return volatility represents how much of Sonic Healthcare pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.1102% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sonic Healthcare Volatility
Volatility is a rate at which the price of Sonic Healthcare or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sonic Healthcare may increase or decrease. In other words, similar to Sonic's beta indicator, it measures the risk of Sonic Healthcare and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sonic Healthcare fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia. Sonic Healthcare operates under Diagnostics Research classification in the United States and is traded on OTC Exchange. It employs 41000 people.
Sonic Healthcare's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Sonic Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sonic Healthcare's price varies over time.
3 ways to utilize Sonic Healthcare's volatility to invest better
Higher Sonic Healthcare's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sonic Healthcare stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Sonic Healthcare stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Sonic Healthcare investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sonic Healthcare's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Sonic Healthcare's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sonic Healthcare Investment Opportunity
Sonic Healthcare Ltd has a volatility of 2.11 and is 2.74 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Sonic Healthcare. You can use Sonic Healthcare Ltd to enhance the returns of your portfolios. The pink sheet experiences a large bullish trend. Check odds of Sonic Healthcare to be traded at $20.46 in 90 days.Average diversification
The correlation between Sonic Healthcare Ltd and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Healthcare Ltd and DJI in the same portfolio, assuming nothing else is changed.
Sonic Healthcare Additional Risk Indicators
The analysis of Sonic Healthcare's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Sonic Healthcare's investment and either accepting that risk or mitigating it. Along with some common measures of Sonic Healthcare pink sheet's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0226 | |||
| Market Risk Adjusted Performance | 0.109 | |||
| Mean Deviation | 1.56 | |||
| Semi Deviation | 1.85 | |||
| Downside Deviation | 1.89 | |||
| Coefficient Of Variation | 4715.81 | |||
| Standard Deviation | 2.1 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Sonic Healthcare Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Sonic Healthcare as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Sonic Healthcare's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Sonic Healthcare's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Sonic Healthcare Ltd.
Additional Tools for Sonic Pink Sheet Analysis
When running Sonic Healthcare's price analysis, check to measure Sonic Healthcare's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sonic Healthcare is operating at the current time. Most of Sonic Healthcare's value examination focuses on studying past and present price action to predict the probability of Sonic Healthcare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sonic Healthcare's price. Additionally, you may evaluate how the addition of Sonic Healthcare to your portfolios can decrease your overall portfolio volatility.