Ho Hup (Malaysia) Volatility
| 5169 Stock | 0.18 0.01 5.26% |
Ho Hup appears to be out of control, given 3 months investment horizon. Ho Hup Construction retains Efficiency (Sharpe Ratio) of 0.1, which attests that the entity had a 0.1% return per unit of price deviation over the last 3 months. By examining Ho Hup's technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please utilize Ho Hup's Market Risk Adjusted Performance of 0.6191, semi deviation of 2.67, and Standard Deviation of 5.0 to validate if our risk estimates are consistent with your expectations. Key indicators related to Ho Hup's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Ho Hup 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 5169 daily returns, and it is calculated using variance and standard deviation. We also use 5169's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ho Hup volatility.
5169 |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Ho Hup at lower prices. For example, an investor can purchase 5169 stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against 5169 Stock
| 0.77 | 4707 | Nestle Bhd | PairCorr |
| 0.76 | 4022 | Tadmax Resources Berhad | PairCorr |
| 0.69 | 5070 | Protasco Bhd | PairCorr |
| 0.42 | 4723 | JAKS Resources Bhd | PairCorr |
| 0.37 | 8192 | Mercury Industries Bhd | PairCorr |
Ho Hup Market Sensitivity And Downside Risk
Ho Hup's beta coefficient measures the volatility of 5169 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 5169 stock's returns against your selected market. In other words, Ho Hup's beta of 0.47 provides an investor with an approximation of how much risk Ho Hup stock can potentially add to one of your existing portfolios. Ho Hup Construction shows above-average downside volatility for the selected time horizon. Ho Hup Construction is a potential penny stock. Although Ho Hup may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Ho Hup Construction. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on 5169 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 Ho Hup Construction Demand TrendCheck current 90 days Ho Hup correlation with market (Dow Jones Industrial)5169 Beta |
5169 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 | 4.97 |
It is essential to understand the difference between upside risk (as represented by Ho Hup's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ho Hup's daily returns or price. Since the actual investment returns on holding a position in 5169 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 Ho Hup.
Ho Hup Construction Stock Volatility Analysis
Volatility refers to the frequency at which Ho Hup stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ho Hup's price changes. Investors will then calculate the volatility of Ho Hup'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 Ho Hup's volatility:
Historical Volatility
This type of stock volatility measures Ho Hup's fluctuations based on previous trends. It's commonly used to predict Ho Hup'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 Ho Hup'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 Ho Hup'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. Ho Hup Construction 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.
Ho Hup Projected Return Density Against Market
Assuming the 90 days trading horizon Ho Hup has a beta of 0.467 . This suggests as returns on the market go up, Ho Hup average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Ho Hup Construction 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 Ho Hup 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 Ho Hup'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 5169 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.
Ho Hup Construction has an alpha of 0.2249, implying that it can generate a 0.22 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Ho Hup 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.Ho Hup Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Ho Hup is 968.21. The daily returns are distributed with a variance of 24.72 and standard deviation of 4.97. The mean deviation of Ho Hup Construction is currently at 2.64. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.22 | |
β | Beta against Dow Jones | 0.47 | |
σ | Overall volatility | 4.97 | |
Ir | Information ratio | 0.03 |
Ho Hup Stock Return Volatility
Ho Hup historical daily return volatility represents how much of Ho Hup stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 4.9719% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ho Hup Volatility
Volatility is a rate at which the price of Ho Hup 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 Ho Hup may increase or decrease. In other words, similar to 5169's beta indicator, it measures the risk of Ho Hup and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ho Hup 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 Ho Hup's volatility to invest better
Higher Ho Hup's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ho Hup Construction 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. Ho Hup Construction 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 Ho Hup Construction investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ho Hup'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 Ho Hup's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ho Hup Investment Opportunity
Ho Hup Construction has a volatility of 4.97 and is 6.72 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Ho Hup Construction is lower than 44 percent of all global equities and portfolios over the last 90 days. You can use Ho Hup Construction to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Ho Hup to be traded at 0.171 in 90 days.Significant diversification
The correlation between Ho Hup Construction and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ho Hup Construction and DJI in the same portfolio, assuming nothing else is changed.
Ho Hup Additional Risk Indicators
The analysis of Ho Hup'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 Ho Hup's investment and either accepting that risk or mitigating it. Along with some common measures of Ho Hup 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 | 0.0535 | |||
| Market Risk Adjusted Performance | 0.6191 | |||
| Mean Deviation | 2.57 | |||
| Semi Deviation | 2.67 | |||
| Downside Deviation | 6.51 | |||
| Coefficient Of Variation | 1699.02 | |||
| Standard Deviation | 5.0 |
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.
Ho Hup 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 Ho Hup 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. Ho Hup'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, Ho Hup'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 Ho Hup Construction.
Other Information on Investing in 5169 Stock
Ho Hup financial ratios help investors to determine whether 5169 Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in 5169 with respect to the benefits of owning Ho Hup security.