Ching Feng (Taiwan) Volatility
| 9935 Stock | TWD 29.75 1.05 3.41% |
At this stage we consider Ching Stock to be not too volatile. Ching Feng Home secures Sharpe Ratio (or Efficiency) of 0.0114, which signifies that the company had a 0.0114% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Ching Feng Home, which you can use to evaluate the volatility of the firm. Please confirm Ching Feng's Mean Deviation of 1.9, downside deviation of 2.35, and Risk Adjusted Performance of 0.0327 to double-check if the risk estimate we provide is consistent with the expected return of 0.0316%. Key indicators related to Ching Feng's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Ching Feng 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 Ching daily returns, and it is calculated using variance and standard deviation. We also use Ching's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ching Feng volatility.
Ching |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ching Feng 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 Ching Feng at lower prices. For example, an investor can purchase Ching 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 Ching Feng'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 Ching Stock
Ching Feng Market Sensitivity And Downside Risk
Ching Feng's beta coefficient measures the volatility of Ching 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 Ching stock's returns against your selected market. In other words, Ching Feng's beta of 0.21 provides an investor with an approximation of how much risk Ching Feng stock can potentially add to one of your existing portfolios. Ching Feng Home currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ching Feng'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 Ching Feng'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 Ching Feng Home Demand TrendCheck current 90 days Ching Feng correlation with market (Dow Jones Industrial)Ching Beta |
Ching 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 | 2.77 |
It is essential to understand the difference between upside risk (as represented by Ching Feng's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ching Feng's daily returns or price. Since the actual investment returns on holding a position in ching 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 Ching Feng.
Ching Feng Home Stock Volatility Analysis
Volatility refers to the frequency at which Ching Feng stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ching Feng's price changes. Investors will then calculate the volatility of Ching Feng'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 Ching Feng's volatility:
Historical Volatility
This type of stock volatility measures Ching Feng's fluctuations based on previous trends. It's commonly used to predict Ching Feng'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 Ching Feng'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 Ching Feng'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. Ching Feng Home 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.
Ching Feng Projected Return Density Against Market
Assuming the 90 days trading horizon Ching Feng has a beta of 0.2136 . This suggests as returns on the market go up, Ching Feng average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Ching Feng Home 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 Ching Feng or Household Durables 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 Ching Feng'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 Ching 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.
Ching Feng Home has an alpha of 0.0611, implying that it can generate a 0.0611 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Ching Feng 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.Ching Feng Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Ching Feng is 8785.77. The daily returns are distributed with a variance of 7.69 and standard deviation of 2.77. The mean deviation of Ching Feng Home is currently at 1.91. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.21 | |
σ | Overall volatility | 2.77 | |
Ir | Information ratio | -0.01 |
Ching Feng Stock Return Volatility
Ching Feng historical daily return volatility represents how much of Ching Feng stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 2.7726% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ching Feng Volatility
Volatility is a rate at which the price of Ching Feng 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 Ching Feng may increase or decrease. In other words, similar to Ching's beta indicator, it measures the risk of Ching Feng and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ching Feng 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.,Ltd designs, develops, manufactures, and markets home decor products in Taiwan China, Vietnam, Thailand, the United States, and internationally. ,Ltd was founded in 1974 and is based in Changhua City, Taiwan. CHING FENG operates under Home Furnishings Fixtures classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 1420 people.
Ching Feng'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 Ching Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Ching Feng's price varies over time.
3 ways to utilize Ching Feng's volatility to invest better
Higher Ching Feng's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ching Feng Home 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. Ching Feng Home 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 Ching Feng Home investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ching Feng'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 Ching Feng's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ching Feng Investment Opportunity
Ching Feng Home has a volatility of 2.77 and is 3.79 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Ching Feng Home is lower than 24 percent of all global equities and portfolios over the last 90 days. You can use Ching Feng Home to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Ching Feng to be traded at NT$28.56 in 90 days.Significant diversification
The correlation between Ching Feng Home and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ching Feng Home and DJI in the same portfolio, assuming nothing else is changed.
Ching Feng Additional Risk Indicators
The analysis of Ching Feng'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 Ching Feng's investment and either accepting that risk or mitigating it. Along with some common measures of Ching Feng 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 | 0.0327 | |||
| Market Risk Adjusted Performance | 0.4104 | |||
| Mean Deviation | 1.9 | |||
| Semi Deviation | 2.08 | |||
| Downside Deviation | 2.35 | |||
| Coefficient Of Variation | 2852.61 | |||
| Standard Deviation | 2.73 |
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.
Ching Feng 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 Ching Feng 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. Ching Feng'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, Ching Feng'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 Ching Feng Home.
Additional Tools for Ching Stock Analysis
When running Ching Feng's price analysis, check to measure Ching Feng'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 Ching Feng is operating at the current time. Most of Ching Feng's value examination focuses on studying past and present price action to predict the probability of Ching Feng's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ching Feng's price. Additionally, you may evaluate how the addition of Ching Feng to your portfolios can decrease your overall portfolio volatility.