Cheng Uei (Taiwan) Volatility
| 2392 Stock | TWD 73.70 0.10 0.14% |
Cheng Uei appears to be very steady, given 3 months investment horizon. Cheng Uei Precision secures Sharpe Ratio (or Efficiency) of 0.08, which signifies that the company had a 0.08% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Cheng Uei Precision, which you can use to evaluate the volatility of the firm. Please makes use of Cheng Uei's mean deviation of 2.23, and Risk Adjusted Performance of 0.0706 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Cheng Uei's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Cheng Uei 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 Cheng daily returns, and it is calculated using variance and standard deviation. We also use Cheng's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cheng Uei volatility.
Cheng |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cheng Uei 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 Cheng Uei at lower prices. For example, an investor can purchase Cheng 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 Cheng Uei'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 Cheng Stock
| 0.76 | 2603 | Evergreen Marine Corp | PairCorr |
| 0.64 | 6669 | Wiwynn Corp | PairCorr |
| 0.76 | 2609 | Yang Ming Marine | PairCorr |
Moving against Cheng Stock
| 0.77 | 3034 | Novatek Microelectronics | PairCorr |
| 0.75 | 2327 | Yageo Corp | PairCorr |
| 0.64 | 5274 | Aspeed Technology | PairCorr |
| 0.61 | 0051 | YuantaP shares Taiwan | PairCorr |
| 0.36 | 4966 | Parade Technologies | PairCorr |
Cheng Uei Market Sensitivity And Downside Risk
Cheng Uei's beta coefficient measures the volatility of Cheng 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 Cheng stock's returns against your selected market. In other words, Cheng Uei's beta of 1.79 provides an investor with an approximation of how much risk Cheng Uei stock can potentially add to one of your existing portfolios. Cheng Uei Precision currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.07. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cheng Uei'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 Cheng Uei'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 Cheng Uei Precision Demand TrendCheck current 90 days Cheng Uei correlation with market (Dow Jones Industrial)Cheng Beta |
Cheng 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 | 3.27 |
It is essential to understand the difference between upside risk (as represented by Cheng Uei's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cheng Uei's daily returns or price. Since the actual investment returns on holding a position in cheng 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 Cheng Uei.
Cheng Uei Precision Stock Volatility Analysis
Volatility refers to the frequency at which Cheng Uei stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cheng Uei's price changes. Investors will then calculate the volatility of Cheng Uei'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 Cheng Uei's volatility:
Historical Volatility
This type of stock volatility measures Cheng Uei's fluctuations based on previous trends. It's commonly used to predict Cheng Uei'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 Cheng Uei'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 Cheng Uei'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. Cheng Uei Precision 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.
Cheng Uei Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.7882 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Cheng Uei will likely underperform.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 Cheng Uei or Electronic Equipment, Instruments & Components 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 Cheng Uei'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 Cheng 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.
Cheng Uei Precision has an alpha of 0.0669, implying that it can generate a 0.0669 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Cheng Uei 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.Cheng Uei Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Cheng Uei is 1249.48. The daily returns are distributed with a variance of 10.72 and standard deviation of 3.27. The mean deviation of Cheng Uei Precision is currently at 2.25. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.07 | |
β | Beta against Dow Jones | 1.79 | |
σ | Overall volatility | 3.27 | |
Ir | Information ratio | 0.05 |
Cheng Uei Stock Return Volatility
Cheng Uei historical daily return volatility represents how much of Cheng Uei stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 3.2743% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7311% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Cheng Uei Volatility
Volatility is a rate at which the price of Cheng Uei 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 Cheng Uei may increase or decrease. In other words, similar to Cheng's beta indicator, it measures the risk of Cheng Uei and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cheng Uei 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.Cheng Uei Precision Industry Co., Ltd. designs, manufactures, and sells connectors, cable assemblies, power management devices, and battery packs to communication devices, computers, and consumer electronics manufacturers worldwide. The company was founded in 1986 and is headquartered in New Taipei City, Taiwan. CHENG UEI is traded on Taiwan Stock Exchange in Taiwan.
Cheng Uei'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 Cheng Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cheng Uei's price varies over time.
3 ways to utilize Cheng Uei's volatility to invest better
Higher Cheng Uei's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cheng Uei Precision 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. Cheng Uei Precision 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 Cheng Uei Precision investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cheng Uei'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 Cheng Uei's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Cheng Uei Investment Opportunity
Cheng Uei Precision has a volatility of 3.27 and is 4.48 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Cheng Uei Precision is lower than 29 percent of all global equities and portfolios over the last 90 days. You can use Cheng Uei Precision to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Cheng Uei to be traded at NT$77.39 in 90 days.Very weak diversification
The correlation between Cheng Uei Precision and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cheng Uei Precision and DJI in the same portfolio, assuming nothing else is changed.
Cheng Uei Additional Risk Indicators
The analysis of Cheng Uei'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 Cheng Uei's investment and either accepting that risk or mitigating it. Along with some common measures of Cheng Uei 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 | 0.0706 | |||
| Market Risk Adjusted Performance | 0.1618 | |||
| Mean Deviation | 2.23 | |||
| Semi Deviation | 2.21 | |||
| Downside Deviation | 2.51 | |||
| Coefficient Of Variation | 1150.32 | |||
| Standard Deviation | 3.24 |
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.
Cheng Uei 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 Cheng Uei 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. Cheng Uei'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, Cheng Uei'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 Cheng Uei Precision.
Additional Tools for Cheng Stock Analysis
When running Cheng Uei's price analysis, check to measure Cheng Uei'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 Cheng Uei is operating at the current time. Most of Cheng Uei's value examination focuses on studying past and present price action to predict the probability of Cheng Uei's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cheng Uei's price. Additionally, you may evaluate how the addition of Cheng Uei to your portfolios can decrease your overall portfolio volatility.