Zhende Medical (China) Volatility
| 603301 Stock | 22.66 0.02 0.09% |
Zhende Medical appears to be very steady, given 3 months investment horizon. Zhende Medical shows Sharpe Ratio of 0.0911, which attests that the company had a 0.0911% return per unit of risk over the last 3 months. We have found thirty technical indicators for Zhende Medical, which you can use to evaluate the volatility of the company. Please utilize Zhende Medical's Mean Deviation of 1.49, market risk adjusted performance of (0.91), and Downside Deviation of 2.45 to validate if our risk estimates are consistent with your expectations. Key indicators related to Zhende Medical's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Zhende Medical 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 Zhende daily returns, and it is calculated using variance and standard deviation. We also use Zhende's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Zhende Medical volatility.
Zhende |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Zhende Medical 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 Zhende Medical at lower prices to lower their average cost per share. Similarly, when the prices of Zhende Medical's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Zhende Stock
| 0.61 | 601939 | China Construction Bank | PairCorr |
| 0.8 | 601318 | Ping An Insurance | PairCorr |
| 0.78 | 600036 | China Merchants Bank | PairCorr |
| 0.62 | 601166 | Industrial Bank | PairCorr |
Zhende Medical Market Sensitivity And Downside Risk
Zhende Medical's beta coefficient measures the volatility of Zhende 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 Zhende stock's returns against your selected market. In other words, Zhende Medical's beta of -0.18 provides an investor with an approximation of how much risk Zhende Medical stock can potentially add to one of your existing portfolios. Zhende Medical Co currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Zhende Medical'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 Zhende Medical'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 Zhende Medical Demand TrendCheck current 90 days Zhende Medical correlation with market (Dow Jones Industrial)Zhende Beta |
Zhende 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 | 2.37 |
It is essential to understand the difference between upside risk (as represented by Zhende Medical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Zhende Medical's daily returns or price. Since the actual investment returns on holding a position in zhende 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 Zhende Medical.
Zhende Medical Stock Volatility Analysis
Volatility refers to the frequency at which Zhende Medical stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Zhende Medical's price changes. Investors will then calculate the volatility of Zhende Medical'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 Zhende Medical's volatility:
Historical Volatility
This type of stock volatility measures Zhende Medical's fluctuations based on previous trends. It's commonly used to predict Zhende Medical'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 Zhende Medical'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 Zhende Medical'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. Zhende Medical 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.
Zhende Medical Projected Return Density Against Market
Assuming the 90 days trading horizon Zhende Medical Co has a beta of -0.1755 . This suggests as returns on the benchmark increase, returns on holding Zhende Medical are expected to decrease at a much lower rate. During a bear market, however, Zhende Medical 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 Zhende Medical or Health Care Equipment & Supplies 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 Zhende Medical'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 Zhende 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.
Zhende Medical Co has an alpha of 0.1658, implying that it can generate a 0.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Zhende Medical 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.Zhende Medical Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Zhende Medical is 1097.72. The daily returns are distributed with a variance of 5.64 and standard deviation of 2.37. The mean deviation of Zhende Medical Co is currently at 1.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | -0.18 | |
σ | Overall volatility | 2.37 | |
Ir | Information ratio | 0.06 |
Zhende Medical Stock Return Volatility
Zhende Medical historical daily return volatility represents how much of Zhende Medical stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.3744% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8043% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Zhende Medical Volatility
Volatility is a rate at which the price of Zhende Medical 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 Zhende Medical may increase or decrease. In other words, similar to Zhende's beta indicator, it measures the risk of Zhende Medical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Zhende Medical 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 Zhende Medical's volatility to invest better
Higher Zhende Medical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Zhende Medical 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. Zhende Medical 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 Zhende Medical investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Zhende Medical'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 Zhende Medical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Zhende Medical Investment Opportunity
Zhende Medical Co has a volatility of 2.37 and is 2.96 times more volatile than Dow Jones Industrial. 21 percent of all equities and portfolios are less risky than Zhende Medical. You can use Zhende Medical Co to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Zhende Medical to be traded at 22.43 in 90 days.Good diversification
The correlation between Zhende Medical Co and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co and DJI in the same portfolio, assuming nothing else is changed.
Zhende Medical Additional Risk Indicators
The analysis of Zhende Medical'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 Zhende Medical's investment and either accepting that risk or mitigating it. Along with some common measures of Zhende Medical 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 | 0.0653 | |||
| Market Risk Adjusted Performance | (0.91) | |||
| Mean Deviation | 1.49 | |||
| Semi Deviation | 2.14 | |||
| Downside Deviation | 2.45 | |||
| Coefficient Of Variation | 1349.89 | |||
| Standard Deviation | 2.32 |
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.
Zhende Medical 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 Zhende Medical 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. Zhende Medical'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, Zhende Medical'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 Zhende Medical Co.
Complementary Tools for Zhende Stock analysis
When running Zhende Medical's price analysis, check to measure Zhende Medical'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 Zhende Medical is operating at the current time. Most of Zhende Medical's value examination focuses on studying past and present price action to predict the probability of Zhende Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zhende Medical's price. Additionally, you may evaluate how the addition of Zhende Medical to your portfolios can decrease your overall portfolio volatility.
| 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 | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |