Ningbo Fangzheng (China) Volatility
| 300998 Stock | 16.49 0.05 0.30% |
Ningbo Fangzheng appears to be somewhat reliable, given 3 months investment horizon. Ningbo Fangzheng Aut has Sharpe Ratio of 0.12, which conveys that the firm had a 0.12% return per unit of risk over the last 3 months. By analyzing Ningbo Fangzheng's technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please exercise Ningbo Fangzheng's Downside Deviation of 4.46, mean deviation of 2.91, and Risk Adjusted Performance of 0.0988 to check out if our risk estimates are consistent with your expectations. Key indicators related to Ningbo Fangzheng's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Ningbo Fangzheng 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 Ningbo daily returns, and it is calculated using variance and standard deviation. We also use Ningbo's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ningbo Fangzheng volatility.
Ningbo |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ningbo Fangzheng 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 Ningbo Fangzheng at lower prices to lower their average cost per share. Similarly, when the prices of Ningbo Fangzheng's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Ningbo Stock
Ningbo Fangzheng Market Sensitivity And Downside Risk
Ningbo Fangzheng's beta coefficient measures the volatility of Ningbo 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 Ningbo stock's returns against your selected market. In other words, Ningbo Fangzheng's beta of 0.78 provides an investor with an approximation of how much risk Ningbo Fangzheng stock can potentially add to one of your existing portfolios. Ningbo Fangzheng Automobile 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 Ningbo Fangzheng'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 Ningbo Fangzheng'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 Ningbo Fangzheng Aut Demand TrendCheck current 90 days Ningbo Fangzheng correlation with market (Dow Jones Industrial)Ningbo Beta |
Ningbo 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 | 4.4 |
It is essential to understand the difference between upside risk (as represented by Ningbo Fangzheng's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ningbo Fangzheng's daily returns or price. Since the actual investment returns on holding a position in ningbo 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 Ningbo Fangzheng.
Ningbo Fangzheng Aut Stock Volatility Analysis
Volatility refers to the frequency at which Ningbo Fangzheng stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ningbo Fangzheng's price changes. Investors will then calculate the volatility of Ningbo Fangzheng'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 Ningbo Fangzheng's volatility:
Historical Volatility
This type of stock volatility measures Ningbo Fangzheng's fluctuations based on previous trends. It's commonly used to predict Ningbo Fangzheng'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 Ningbo Fangzheng'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 Ningbo Fangzheng'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. Ningbo Fangzheng Aut 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.
Ningbo Fangzheng Projected Return Density Against Market
Assuming the 90 days trading horizon Ningbo Fangzheng has a beta of 0.7771 . This suggests as returns on the market go up, Ningbo Fangzheng average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Ningbo Fangzheng Automobile 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 Ningbo Fangzheng or Automobile 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 Ningbo Fangzheng'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 Ningbo 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.
Ningbo Fangzheng Automobile has an alpha of 0.4045, implying that it can generate a 0.4 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Ningbo Fangzheng 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.Ningbo Fangzheng Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Ningbo Fangzheng is 856.08. The daily returns are distributed with a variance of 19.32 and standard deviation of 4.4. The mean deviation of Ningbo Fangzheng Automobile is currently at 3.06. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.40 | |
β | Beta against Dow Jones | 0.78 | |
σ | Overall volatility | 4.40 | |
Ir | Information ratio | 0.09 |
Ningbo Fangzheng Stock Return Volatility
Ningbo Fangzheng historical daily return volatility represents how much of Ningbo Fangzheng stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 4.3952% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7483% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ningbo Fangzheng Volatility
Volatility is a rate at which the price of Ningbo Fangzheng 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 Ningbo Fangzheng may increase or decrease. In other words, similar to Ningbo's beta indicator, it measures the risk of Ningbo Fangzheng and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ningbo Fangzheng 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 Ningbo Fangzheng's volatility to invest better
Higher Ningbo Fangzheng's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ningbo Fangzheng Aut 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. Ningbo Fangzheng Aut 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 Ningbo Fangzheng Aut investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ningbo Fangzheng'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 Ningbo Fangzheng's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ningbo Fangzheng Investment Opportunity
Ningbo Fangzheng Automobile has a volatility of 4.4 and is 5.87 times more volatile than Dow Jones Industrial. 39 percent of all equities and portfolios are less risky than Ningbo Fangzheng. You can use Ningbo Fangzheng Automobile to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Ningbo Fangzheng to be traded at 17.31 in 90 days.Average diversification
The correlation between Ningbo Fangzheng Automobile and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and DJI in the same portfolio, assuming nothing else is changed.
Ningbo Fangzheng Additional Risk Indicators
The analysis of Ningbo Fangzheng'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 Ningbo Fangzheng's investment and either accepting that risk or mitigating it. Along with some common measures of Ningbo Fangzheng 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 | 0.0988 | |||
| Market Risk Adjusted Performance | 0.6339 | |||
| Mean Deviation | 2.91 | |||
| Semi Deviation | 3.94 | |||
| Downside Deviation | 4.46 | |||
| Coefficient Of Variation | 842.03 | |||
| Standard Deviation | 4.17 |
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.
Ningbo Fangzheng 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 Ningbo Fangzheng 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. Ningbo Fangzheng'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, Ningbo Fangzheng'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 Ningbo Fangzheng Automobile.
Complementary Tools for Ningbo Stock analysis
When running Ningbo Fangzheng's price analysis, check to measure Ningbo Fangzheng'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 Ningbo Fangzheng is operating at the current time. Most of Ningbo Fangzheng's value examination focuses on studying past and present price action to predict the probability of Ningbo Fangzheng's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ningbo Fangzheng's price. Additionally, you may evaluate how the addition of Ningbo Fangzheng to your portfolios can decrease your overall portfolio volatility.
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| 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 | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |