FLAT GLASS (Germany) Volatility
| 72T Stock | EUR 1.49 0.01 0.67% |
FLAT GLASS appears to be extremely dangerous, given 3 months investment horizon. FLAT GLASS GROUP retains Efficiency (Sharpe Ratio) of 0.16, which denotes the company had a 0.16% return per unit of risk over the last 3 months. By reviewing FLAT GLASS's technical indicators, you can evaluate if the expected return of 0.92% is justified by implied risk. Please utilize FLAT GLASS's Downside Deviation of 4.94, coefficient of variation of 803.4, and Market Risk Adjusted Performance of (0.83) to check if our risk estimates are consistent with your expectations. Key indicators related to FLAT GLASS's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
FLAT GLASS 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 FLAT daily returns, and it is calculated using variance and standard deviation. We also use FLAT's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of FLAT GLASS volatility.
FLAT |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as FLAT GLASS 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 FLAT GLASS at lower prices to lower their average cost per share. Similarly, when the prices of FLAT GLASS's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with FLAT Stock
Moving against FLAT Stock
FLAT GLASS Market Sensitivity And Downside Risk
FLAT GLASS's beta coefficient measures the volatility of FLAT 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 FLAT stock's returns against your selected market. In other words, FLAT GLASS's beta of -0.85 provides an investor with an approximation of how much risk FLAT GLASS stock can potentially add to one of your existing portfolios. FLAT GLASS GROUP exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FLAT GLASS'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 FLAT GLASS'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 FLAT GLASS GROUP Demand TrendCheck current 90 days FLAT GLASS correlation with market (Dow Jones Industrial)FLAT Beta |
FLAT 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 | 5.73 |
It is essential to understand the difference between upside risk (as represented by FLAT GLASS's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of FLAT GLASS's daily returns or price. Since the actual investment returns on holding a position in flat 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 FLAT GLASS.
FLAT GLASS GROUP Stock Volatility Analysis
Volatility refers to the frequency at which FLAT GLASS stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with FLAT GLASS's price changes. Investors will then calculate the volatility of FLAT GLASS'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 FLAT GLASS's volatility:
Historical Volatility
This type of stock volatility measures FLAT GLASS's fluctuations based on previous trends. It's commonly used to predict FLAT GLASS'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 FLAT GLASS'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 FLAT GLASS'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. FLAT GLASS GROUP 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.
FLAT GLASS Projected Return Density Against Market
Assuming the 90 days horizon FLAT GLASS GROUP has a beta of -0.8536 . This suggestsMost 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 FLAT GLASS 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 FLAT GLASS'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 FLAT 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.
FLAT GLASS GROUP has an alpha of 0.7788, implying that it can generate a 0.78 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a FLAT GLASS 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.FLAT GLASS Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of FLAT GLASS is 623.26. The daily returns are distributed with a variance of 32.88 and standard deviation of 5.73. The mean deviation of FLAT GLASS GROUP is currently at 4.25. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.78 | |
β | Beta against Dow Jones | -0.85 | |
σ | Overall volatility | 5.73 | |
Ir | Information ratio | 0.11 |
FLAT GLASS Stock Return Volatility
FLAT GLASS historical daily return volatility represents how much of FLAT GLASS stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 5.7337% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7253% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About FLAT GLASS Volatility
Volatility is a rate at which the price of FLAT GLASS 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 FLAT GLASS may increase or decrease. In other words, similar to FLAT's beta indicator, it measures the risk of FLAT GLASS and helps estimate the fluctuations that may happen in a short period of time. So if prices of FLAT GLASS 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.Flat Glass Group Co., Ltd., together with its subsidiaries, engages in the production and sale of glass products in the Peoples Republic of China, rest of Asia, Europe, North America, and internationally. Flat Glass Group Co., Ltd. was founded in 1998 and is headquartered in Jiaxing, the Peoples Republic of China. FLAT GLASS operates under Building Products Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3440 people.
FLAT GLASS'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 FLAT Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much FLAT GLASS's price varies over time.
3 ways to utilize FLAT GLASS's volatility to invest better
Higher FLAT GLASS's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of FLAT GLASS GROUP 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. FLAT GLASS GROUP 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 FLAT GLASS GROUP investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in FLAT GLASS'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 FLAT GLASS's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
FLAT GLASS Investment Opportunity
FLAT GLASS GROUP has a volatility of 5.73 and is 7.85 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of FLAT GLASS GROUP is higher than 51 percent of all global equities and portfolios over the last 90 days. You can use FLAT GLASS GROUP to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of FLAT GLASS to be traded at €1.4602 in 90 days.Good diversification
The correlation between FLAT GLASS GROUP and DJI is -0.11 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding FLAT GLASS GROUP and DJI in the same portfolio, assuming nothing else is changed.
FLAT GLASS Additional Risk Indicators
The analysis of FLAT GLASS'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 FLAT GLASS's investment and either accepting that risk or mitigating it. Along with some common measures of FLAT GLASS 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 | 0.0986 | |||
| Market Risk Adjusted Performance | (0.83) | |||
| Mean Deviation | 4.35 | |||
| Semi Deviation | 4.36 | |||
| Downside Deviation | 4.94 | |||
| Coefficient Of Variation | 803.4 | |||
| Standard Deviation | 5.82 |
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.
FLAT GLASS 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 FLAT GLASS 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. FLAT GLASS'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, FLAT GLASS'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 FLAT GLASS GROUP.
Complementary Tools for FLAT Stock analysis
When running FLAT GLASS's price analysis, check to measure FLAT GLASS'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 FLAT GLASS is operating at the current time. Most of FLAT GLASS's value examination focuses on studying past and present price action to predict the probability of FLAT GLASS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FLAT GLASS's price. Additionally, you may evaluate how the addition of FLAT GLASS to your portfolios can decrease your overall portfolio volatility.
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