CENTR Brands (Germany) Volatility
| 303 Stock | EUR 0.05 0.00 0.00% |
CENTR Brands is out of control given 3 months investment horizon. CENTR Brands Corp secures Sharpe Ratio (or Efficiency) of 0.29, which signifies that the company had a 0.29% return per unit of risk over the last 3 months. We were able to interpolate twenty-five different technical indicators, which can help you to evaluate if expected returns of 83.66% are justified by taking the suggested risk. Use CENTR Brands mean deviation of 170.55, and Risk Adjusted Performance of 0.2452 to evaluate company specific risk that cannot be diversified away. Key indicators related to CENTR Brands' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
CENTR Brands 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 CENTR daily returns, and it is calculated using variance and standard deviation. We also use CENTR's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CENTR Brands volatility.
CENTR |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CENTR Brands 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 CENTR Brands at lower prices to lower their average cost per share. Similarly, when the prices of CENTR Brands' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against CENTR Stock
CENTR Brands Market Sensitivity And Downside Risk
CENTR Brands' beta coefficient measures the volatility of CENTR 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 CENTR stock's returns against your selected market. In other words, CENTR Brands's beta of -18.55 provides an investor with an approximation of how much risk CENTR Brands stock can potentially add to one of your existing portfolios. CENTR Brands Corp is showing large volatility of returns over the selected time horizon. CENTR Brands Corp is a penny stock. Although CENTR Brands may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in CENTR Brands Corp. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on CENTR instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze CENTR Brands Corp Demand TrendCheck current 90 days CENTR Brands correlation with market (Dow Jones Industrial)CENTR Beta |
CENTR 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 | 288.49 |
It is essential to understand the difference between upside risk (as represented by CENTR Brands's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CENTR Brands' daily returns or price. Since the actual investment returns on holding a position in centr 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 CENTR Brands.
CENTR Brands Corp Stock Volatility Analysis
Volatility refers to the frequency at which CENTR Brands stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CENTR Brands' price changes. Investors will then calculate the volatility of CENTR Brands' 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 CENTR Brands' volatility:
Historical Volatility
This type of stock volatility measures CENTR Brands' fluctuations based on previous trends. It's commonly used to predict CENTR Brands' 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 CENTR Brands' 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 CENTR Brands' 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. CENTR Brands Corp 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.
CENTR Brands Projected Return Density Against Market
Assuming the 90 days horizon CENTR Brands Corp has a beta of -18.5536 . This suggests as returns on its benchmark rise, returns on holding CENTR Brands Corp are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, CENTR Brands is expected to outperform its benchmark.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 CENTR Brands 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 CENTR Brands' 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 CENTR 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.
CENTR Brands Corp has an alpha of 83.8748, implying that it can generate a 83.87 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CENTR Brands 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.CENTR Brands Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of CENTR Brands is 344.86. The daily returns are distributed with a variance of 83227.39 and standard deviation of 288.49. The mean deviation of CENTR Brands Corp is currently at 170.55. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 83.87 | |
β | Beta against Dow Jones | -18.55 | |
σ | Overall volatility | 288.49 | |
Ir | Information ratio | 0.29 |
CENTR Brands Stock Return Volatility
CENTR Brands historical daily return volatility represents how much of CENTR Brands stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 288.4916% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8068% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CENTR Brands Volatility
Volatility is a rate at which the price of CENTR Brands 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 CENTR Brands may increase or decrease. In other words, similar to CENTR's beta indicator, it measures the risk of CENTR Brands and helps estimate the fluctuations that may happen in a short period of time. So if prices of CENTR Brands 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.CENTR Brands Corp. engages in the development and marketing of beverages infused with hemp-derived extracts and derivatives. CENTR Brands Corp. was founded in 2012 and is based in Vancouver, Canada. CENTR BRANDS operates under Drug ManufacturersSpecialty Generic classification in Germany and is traded on Frankfurt Stock Exchange. It employs 14 people.
CENTR Brands' 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 CENTR Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CENTR Brands' price varies over time.
3 ways to utilize CENTR Brands' volatility to invest better
Higher CENTR Brands' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CENTR Brands Corp 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. CENTR Brands Corp 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 CENTR Brands Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CENTR Brands' 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 CENTR Brands' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CENTR Brands Investment Opportunity
CENTR Brands Corp has a volatility of 288.49 and is 356.16 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of CENTR Brands Corp is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use CENTR Brands Corp to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of CENTR Brands to be traded at €0.0501 in 90 days.Good diversification
The correlation between CENTR Brands Corp and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CENTR Brands Corp and DJI in the same portfolio, assuming nothing else is changed.
CENTR Brands Additional Risk Indicators
The analysis of CENTR Brands' 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 CENTR Brands' investment and either accepting that risk or mitigating it. Along with some common measures of CENTR Brands 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 | 0.2452 | |||
| Market Risk Adjusted Performance | (4.50) | |||
| Mean Deviation | 170.55 | |||
| Semi Deviation | 39.22 | |||
| Downside Deviation | 68.75 | |||
| Coefficient Of Variation | 344.86 | |||
| Standard Deviation | 288.49 |
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.
CENTR Brands 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 CENTR Brands 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. CENTR Brands' 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, CENTR Brands' 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 CENTR Brands Corp.
Complementary Tools for CENTR Stock analysis
When running CENTR Brands' price analysis, check to measure CENTR Brands' 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 CENTR Brands is operating at the current time. Most of CENTR Brands' value examination focuses on studying past and present price action to predict the probability of CENTR Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CENTR Brands' price. Additionally, you may evaluate how the addition of CENTR Brands to your portfolios can decrease your overall portfolio volatility.
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |