Financial Street (China) Volatility
| 000402 Stock | 3.48 0.01 0.29% |
At this point, Financial Street is very risky. Financial Street Holdings secures Sharpe Ratio (or Efficiency) of 0.0199, which denotes the company had a 0.0199% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Financial Street Holdings, which you can use to evaluate the volatility of the firm. Please confirm Financial Street's Downside Deviation of 4.33, mean deviation of 3.74, and Coefficient Of Variation of 621.23 to check if the risk estimate we provide is consistent with the expected return of 0.0898%. Key indicators related to Financial Street's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Financial Street Stock 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 Financial daily returns, and it is calculated using variance and standard deviation. We also use Financial's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Financial Street volatility.
Financial |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Financial Street can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Financial Street at lower prices to lower their average cost per share. Similarly, when the prices of Financial Street's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Financial Stock
| 0.73 | 001979 | China Merchants Shekou | PairCorr |
| 0.71 | 601995 | China International | PairCorr |
| 0.77 | 600153 | Xiamen CD | PairCorr |
| 0.85 | 300750 | Contemporary Amperex | PairCorr |
Financial Street Market Sensitivity And Downside Risk
Financial Street's beta coefficient measures the volatility of Financial stock 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 Financial stock's returns against your selected market. In other words, Financial Street's beta of -0.59 provides an investor with an approximation of how much risk Financial Street stock can potentially add to one of your existing portfolios. Financial Street Holdings shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Financial Street's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Financial Street's stock 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 Financial Street Holdings Demand TrendCheck current 90 days Financial Street correlation with market (Dow Jones Industrial)Financial Beta |
Financial 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 | 4.52 |
It is essential to understand the difference between upside risk (as represented by Financial Street's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Financial Street's daily returns or price. Since the actual investment returns on holding a position in financial stock 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 Financial Street.
Financial Street Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Financial Street stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Financial Street's price changes. Investors will then calculate the volatility of Financial Street's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Financial Street's volatility:
Historical Volatility
This type of stock volatility measures Financial Street's fluctuations based on previous trends. It's commonly used to predict Financial Street's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Financial Street's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Financial Street'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. Financial Street Holdings 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.
Financial Street Projected Return Density Against Market
Assuming the 90 days trading horizon Financial Street Holdings has a beta of -0.5941 . This suggests as returns on the benchmark increase, returns on holding Financial Street are expected to decrease at a much lower rate. During a bear market, however, Financial Street Holdings is likely to outperform the market.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 Financial Street or Real Estate Management & Development 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 Financial Street's price will be affected by overall stock 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 Financial stock'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.
Financial Street Holdings has an alpha of 0.8101, implying that it can generate a 0.81 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Financial Street Price Volatility?
Several factors can influence a stock'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.Financial Street Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Financial Street is 5035.83. The daily returns are distributed with a variance of 20.47 and standard deviation of 4.52. The mean deviation of Financial Street Holdings is currently at 3.38. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.81 | |
β | Beta against Dow Jones | -0.59 | |
σ | Overall volatility | 4.52 | |
Ir | Information ratio | 0.15 |
Financial Street Stock Return Volatility
Financial Street historical daily return volatility represents how much of Financial Street stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 4.5244% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8088% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Financial Street Volatility
Volatility is a rate at which the price of Financial Street 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 Financial Street may increase or decrease. In other words, similar to Financial's beta indicator, it measures the risk of Financial Street and helps estimate the fluctuations that may happen in a short period of time. So if prices of Financial Street 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.3 ways to utilize Financial Street's volatility to invest better
Higher Financial Street's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Financial Street Holdings 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. Financial Street Holdings 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 Financial Street Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Financial Street'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 Financial Street's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Financial Street Investment Opportunity
Financial Street Holdings has a volatility of 4.52 and is 5.58 times more volatile than Dow Jones Industrial. 40 percent of all equities and portfolios are less risky than Financial Street. You can use Financial Street Holdings to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Financial Street to be traded at 3.65 in 90 days.Good diversification
The correlation between Financial Street Holdings and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and DJI in the same portfolio, assuming nothing else is changed.
Financial Street Additional Risk Indicators
The analysis of Financial Street'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 Financial Street's investment and either accepting that risk or mitigating it. Along with some common measures of Financial Street stock'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 | 0.1362 | |||
| Market Risk Adjusted Performance | (1.31) | |||
| Mean Deviation | 3.74 | |||
| Semi Deviation | 3.65 | |||
| Downside Deviation | 4.33 | |||
| Coefficient Of Variation | 621.23 | |||
| Standard Deviation | 4.94 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Financial Street 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 Financial Street 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. Financial Street'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, Financial Street'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 Financial Street Holdings.
Complementary Tools for Financial Stock analysis
When running Financial Street's price analysis, check to measure Financial Street'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 Financial Street is operating at the current time. Most of Financial Street's value examination focuses on studying past and present price action to predict the probability of Financial Street's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Financial Street's price. Additionally, you may evaluate how the addition of Financial Street to your portfolios can decrease your overall portfolio volatility.
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |