Globaltek Fabrication (Taiwan) Volatility
| 4566 Stock | TWD 73.00 4.60 5.93% |
Globaltek Fabrication holds Efficiency (Sharpe) Ratio of -0.12, which attests that the entity had a -0.12% return per unit of risk over the last 3 months. Globaltek Fabrication exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Globaltek Fabrication's Risk Adjusted Performance of (0.08), market risk adjusted performance of (3.13), and Standard Deviation of 2.44 to validate the risk estimate we provide. Key indicators related to Globaltek Fabrication's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Globaltek Fabrication 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 Globaltek daily returns, and it is calculated using variance and standard deviation. We also use Globaltek's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Globaltek Fabrication volatility.
Globaltek |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Globaltek Fabrication 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 Globaltek Fabrication at lower prices. For example, an investor can purchase Globaltek 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 Globaltek Fabrication'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 Globaltek Stock
Moving against Globaltek Stock
| 0.74 | 6613 | Nova Technology | PairCorr |
| 0.53 | 4506 | Golden Friends | PairCorr |
| 0.53 | 6438 | Symtek Automation Asia | PairCorr |
| 0.46 | 2233 | Turvo International | PairCorr |
| 0.42 | 0050 | YuantaP shares Taiwan | PairCorr |
| 0.38 | 6811 | Acer E Enabling | PairCorr |
| 0.34 | 2421 | Sunonwealth Electric | PairCorr |
| 0.33 | 0057 | Fubon MSCI Taiwan | PairCorr |
Globaltek Fabrication Market Sensitivity And Downside Risk
Globaltek Fabrication's beta coefficient measures the volatility of Globaltek 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 Globaltek stock's returns against your selected market. In other words, Globaltek Fabrication's beta of 0.0911 provides an investor with an approximation of how much risk Globaltek Fabrication stock can potentially add to one of your existing portfolios. Globaltek Fabrication Co exhibits very low volatility with skewness of 1.39 and kurtosis of 4.88. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Globaltek Fabrication'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 Globaltek Fabrication'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 Globaltek Fabrication Demand TrendCheck current 90 days Globaltek Fabrication correlation with market (Dow Jones Industrial)Globaltek Beta |
Globaltek 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 | 2.44 |
It is essential to understand the difference between upside risk (as represented by Globaltek Fabrication's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Globaltek Fabrication's daily returns or price. Since the actual investment returns on holding a position in globaltek 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 Globaltek Fabrication.
Globaltek Fabrication Stock Volatility Analysis
Volatility refers to the frequency at which Globaltek Fabrication stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Globaltek Fabrication's price changes. Investors will then calculate the volatility of Globaltek Fabrication'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 Globaltek Fabrication's volatility:
Historical Volatility
This type of stock volatility measures Globaltek Fabrication's fluctuations based on previous trends. It's commonly used to predict Globaltek Fabrication'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 Globaltek Fabrication'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 Globaltek Fabrication'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. Globaltek Fabrication 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.
Globaltek Fabrication Projected Return Density Against Market
Assuming the 90 days trading horizon Globaltek Fabrication has a beta of 0.0911 . This suggests as returns on the market go up, Globaltek Fabrication average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Globaltek Fabrication Co 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 Globaltek Fabrication or Industrials 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 Globaltek Fabrication'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 Globaltek 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.
Globaltek Fabrication Co 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 Globaltek Fabrication 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.Globaltek Fabrication Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Globaltek Fabrication is -804.31. The daily returns are distributed with a variance of 5.94 and standard deviation of 2.44. The mean deviation of Globaltek Fabrication Co is currently at 1.65. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.29 | |
β | Beta against Dow Jones | 0.09 | |
σ | Overall volatility | 2.44 | |
Ir | Information ratio | -0.15 |
Globaltek Fabrication Stock Return Volatility
Globaltek Fabrication historical daily return volatility represents how much of Globaltek Fabrication stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 2.4373% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Globaltek Fabrication Volatility
Volatility is a rate at which the price of Globaltek Fabrication 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 Globaltek Fabrication may increase or decrease. In other words, similar to Globaltek's beta indicator, it measures the risk of Globaltek Fabrication and helps estimate the fluctuations that may happen in a short period of time. So if prices of Globaltek Fabrication 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.GLOBAL TEK FABRICATION CO., Ltd. manufactures and sells precision parts and subassemblies. The company was founded in 2000 and is headquartered in New Taipei City, Taiwan. GLOBALTEK FABRICATION operates under Specialty Industrial Machinery classification in Taiwan and is traded on Taiwan Stock Exchange.
Globaltek Fabrication'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 Globaltek Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Globaltek Fabrication's price varies over time.
3 ways to utilize Globaltek Fabrication's volatility to invest better
Higher Globaltek Fabrication's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Globaltek Fabrication 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. Globaltek Fabrication 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 Globaltek Fabrication investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Globaltek Fabrication'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 Globaltek Fabrication's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Globaltek Fabrication Investment Opportunity
Globaltek Fabrication Co has a volatility of 2.44 and is 3.34 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Globaltek Fabrication Co is lower than 21 percent of all global equities and portfolios over the last 90 days. You can use Globaltek Fabrication Co to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Globaltek Fabrication to be traded at NT$69.35 in 90 days.Significant diversification
The correlation between Globaltek Fabrication Co and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Globaltek Fabrication Co and DJI in the same portfolio, assuming nothing else is changed.
Globaltek Fabrication Additional Risk Indicators
The analysis of Globaltek Fabrication'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 Globaltek Fabrication's investment and either accepting that risk or mitigating it. Along with some common measures of Globaltek Fabrication 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 | (0.08) | |||
| Market Risk Adjusted Performance | (3.13) | |||
| Mean Deviation | 1.67 | |||
| Coefficient Of Variation | (883.72) | |||
| Standard Deviation | 2.44 | |||
| Variance | 5.95 | |||
| Information Ratio | (0.15) |
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.
Globaltek Fabrication 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 Globaltek Fabrication 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. Globaltek Fabrication'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, Globaltek Fabrication'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 Globaltek Fabrication Co.
Additional Tools for Globaltek Stock Analysis
When running Globaltek Fabrication's price analysis, check to measure Globaltek Fabrication'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 Globaltek Fabrication is operating at the current time. Most of Globaltek Fabrication's value examination focuses on studying past and present price action to predict the probability of Globaltek Fabrication's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Globaltek Fabrication's price. Additionally, you may evaluate how the addition of Globaltek Fabrication to your portfolios can decrease your overall portfolio volatility.