Hengdian Entertainment (China) Volatility
| 603103 Stock | 15.27 1.18 7.17% |
Hengdian Entertainment appears to be somewhat reliable, given 3 months investment horizon. Hengdian Entertainment holds Efficiency (Sharpe) Ratio of 0.19, which attests that the entity had a 0.19% return per unit of risk over the last 3 months. By evaluating Hengdian Entertainment's technical indicators, you can evaluate if the expected return of 0.75% is justified by implied risk. Please utilize Hengdian Entertainment's Downside Deviation of 3.6, market risk adjusted performance of (4.95), and Risk Adjusted Performance of 0.0866 to validate if our risk estimates are consistent with your expectations. Key indicators related to Hengdian Entertainment's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Hengdian Entertainment 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 Hengdian daily returns, and it is calculated using variance and standard deviation. We also use Hengdian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Hengdian Entertainment volatility.
Hengdian |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Hengdian Entertainment 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 Hengdian Entertainment at lower prices to lower their average cost per share. Similarly, when the prices of Hengdian Entertainment's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Hengdian Stock
| 0.67 | 600519 | Kweichow Moutai | PairCorr |
| 0.81 | 300750 | Contemporary Amperex | PairCorr |
| 0.72 | 200596 | Anhui Gujing Distillery | PairCorr |
| 0.79 | 000596 | Anhui Gujing Distillery | PairCorr |
| 0.87 | 002371 | NAURA Technology | PairCorr |
| 0.69 | 300760 | Shenzhen Mindray Bio | PairCorr |
Hengdian Entertainment Market Sensitivity And Downside Risk
Hengdian Entertainment's beta coefficient measures the volatility of Hengdian 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 Hengdian stock's returns against your selected market. In other words, Hengdian Entertainment's beta of -0.0804 provides an investor with an approximation of how much risk Hengdian Entertainment stock can potentially add to one of your existing portfolios. Hengdian Entertainment Co 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 Hengdian Entertainment'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 Hengdian Entertainment'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 Hengdian Entertainment Demand TrendCheck current 90 days Hengdian Entertainment correlation with market (Dow Jones Industrial)Hengdian Beta |
Hengdian 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 | 3.94 |
It is essential to understand the difference between upside risk (as represented by Hengdian Entertainment's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Hengdian Entertainment's daily returns or price. Since the actual investment returns on holding a position in hengdian 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 Hengdian Entertainment.
Hengdian Entertainment Stock Volatility Analysis
Volatility refers to the frequency at which Hengdian Entertainment stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Hengdian Entertainment's price changes. Investors will then calculate the volatility of Hengdian Entertainment'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 Hengdian Entertainment's volatility:
Historical Volatility
This type of stock volatility measures Hengdian Entertainment's fluctuations based on previous trends. It's commonly used to predict Hengdian Entertainment'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 Hengdian Entertainment'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 Hengdian Entertainment'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. Hengdian Entertainment 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.
Hengdian Entertainment Projected Return Density Against Market
Assuming the 90 days trading horizon Hengdian Entertainment Co has a beta of -0.0804 . This suggests as returns on the benchmark increase, returns on holding Hengdian Entertainment are expected to decrease at a much lower rate. During a bear market, however, Hengdian Entertainment Co is likely to outperform the market.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 Hengdian Entertainment or Entertainment 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 Hengdian Entertainment'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 Hengdian 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.
Hengdian Entertainment Co has an alpha of 0.4078, implying that it can generate a 0.41 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Hengdian Entertainment 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.Hengdian Entertainment Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Hengdian Entertainment is 524.45. The daily returns are distributed with a variance of 15.54 and standard deviation of 3.94. The mean deviation of Hengdian Entertainment Co is currently at 3.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.41 | |
β | Beta against Dow Jones | -0.08 | |
σ | Overall volatility | 3.94 | |
Ir | Information ratio | 0.07 |
Hengdian Entertainment Stock Return Volatility
Hengdian Entertainment historical daily return volatility represents how much of Hengdian Entertainment stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.9416% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Hengdian Entertainment Volatility
Volatility is a rate at which the price of Hengdian Entertainment 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 Hengdian Entertainment may increase or decrease. In other words, similar to Hengdian's beta indicator, it measures the risk of Hengdian Entertainment and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hengdian Entertainment 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 Hengdian Entertainment's volatility to invest better
Higher Hengdian Entertainment's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Hengdian Entertainment 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. Hengdian Entertainment 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 Hengdian Entertainment investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Hengdian Entertainment'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 Hengdian Entertainment's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Hengdian Entertainment Investment Opportunity
Hengdian Entertainment Co has a volatility of 3.94 and is 5.25 times more volatile than Dow Jones Industrial. 35 percent of all equities and portfolios are less risky than Hengdian Entertainment. You can use Hengdian Entertainment Co to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Hengdian Entertainment to be traded at 14.51 in 90 days.Good diversification
The correlation between Hengdian Entertainment Co and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and DJI in the same portfolio, assuming nothing else is changed.
Hengdian Entertainment Additional Risk Indicators
The analysis of Hengdian Entertainment'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 Hengdian Entertainment's investment and either accepting that risk or mitigating it. Along with some common measures of Hengdian Entertainment 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 | 0.0866 | |||
| Market Risk Adjusted Performance | (4.95) | |||
| Mean Deviation | 3.03 | |||
| Semi Deviation | 3.48 | |||
| Downside Deviation | 3.6 | |||
| Coefficient Of Variation | 975.3 | |||
| Standard Deviation | 3.98 |
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.
Hengdian Entertainment 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 Hengdian Entertainment 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. Hengdian Entertainment'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, Hengdian Entertainment'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 Hengdian Entertainment Co.
Complementary Tools for Hengdian Stock analysis
When running Hengdian Entertainment's price analysis, check to measure Hengdian Entertainment'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 Hengdian Entertainment is operating at the current time. Most of Hengdian Entertainment's value examination focuses on studying past and present price action to predict the probability of Hengdian Entertainment's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hengdian Entertainment's price. Additionally, you may evaluate how the addition of Hengdian Entertainment to your portfolios can decrease your overall portfolio volatility.
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