Sendas Distribuidora SA Volatility
| ASAIDelisted Stock | USD 4.60 0.09 2.00% |
Sendas Distribuidora owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0693, which indicates the firm had a -0.0693 % return per unit of risk over the last 3 months. Sendas Distribuidora SA exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Sendas Distribuidora's Risk Adjusted Performance of 0.0109, variance of 6.83, and Coefficient Of Variation of 20706.61 to confirm the risk estimate we provide. Key indicators related to Sendas Distribuidora's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Sendas Distribuidora 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 Sendas daily returns, and it is calculated using variance and standard deviation. We also use Sendas's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sendas Distribuidora volatility.
Sendas |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sendas Distribuidora at lower prices. For example, an investor can purchase Sendas 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.
Sendas Distribuidora Market Sensitivity And Downside Risk
Sendas Distribuidora's beta coefficient measures the volatility of Sendas 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 Sendas stock's returns against your selected market. In other words, Sendas Distribuidora's beta of -0.16 provides an investor with an approximation of how much risk Sendas Distribuidora stock can potentially add to one of your existing portfolios. Sendas Distribuidora SA exhibits very low volatility with skewness of 1.37 and kurtosis of 2.67. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sendas Distribuidora'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 Sendas Distribuidora'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 Sendas Distribuidora Demand TrendCheck current 90 days Sendas Distribuidora correlation with market (Dow Jones Industrial)Sendas Beta |
Sendas 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 | 2.65 |
It is essential to understand the difference between upside risk (as represented by Sendas Distribuidora's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sendas Distribuidora's daily returns or price. Since the actual investment returns on holding a position in sendas 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 Sendas Distribuidora.
Sendas Distribuidora Stock Volatility Analysis
Volatility refers to the frequency at which Sendas Distribuidora delisted stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sendas Distribuidora's price changes. Investors will then calculate the volatility of Sendas Distribuidora's stock to predict their future moves. A delisted 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 delisted 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 Sendas Distribuidora's volatility:
Historical Volatility
This type of delisted stock volatility measures Sendas Distribuidora's fluctuations based on previous trends. It's commonly used to predict Sendas Distribuidora'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 Sendas Distribuidora's current market price. This means that the delisted stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sendas Distribuidora's to be redeemed at a future date.Transformation |
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Sendas Distribuidora Projected Return Density Against Market
Given the investment horizon of 90 days Sendas Distribuidora SA has a beta of -0.16 . This suggests as returns on the benchmark increase, returns on holding Sendas Distribuidora are expected to decrease at a much lower rate. During a bear market, however, Sendas Distribuidora SA 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 Sendas Distribuidora or Consumer Staples Distribution & Retail 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 Sendas Distribuidora'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 Sendas delisted 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.
Sendas Distribuidora SA has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Sendas Distribuidora Price Volatility?
Several factors can influence a delisted 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.Sendas Distribuidora Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Sendas Distribuidora is -1443.44. The daily returns are distributed with a variance of 7.01 and standard deviation of 2.65. The mean deviation of Sendas Distribuidora SA is currently at 1.74. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.9
α | Alpha over Dow Jones | -0.0032 | |
β | Beta against Dow Jones | -0.16 | |
σ | Overall volatility | 2.65 | |
Ir | Information ratio | 0.01 |
Sendas Distribuidora Stock Return Volatility
Sendas Distribuidora historical daily return volatility represents how much of Sendas Distribuidora delisted stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.6477% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8639% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sendas Distribuidora Volatility
Volatility is a rate at which the price of Sendas Distribuidora 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 Sendas Distribuidora may increase or decrease. In other words, similar to Sendas's beta indicator, it measures the risk of Sendas Distribuidora and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sendas Distribuidora 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.Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products in Brazil. Sendas Distribuidora S.A. was founded in 1974 and is headquartered in Rio de Janeiro, Brazil. Sendas Distribuidora operates under Grocery Stores classification in the United States and is traded on New York Stock Exchange. It employs 60000 people.
Sendas Distribuidora'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 Sendas Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sendas Distribuidora's price varies over time.
3 ways to utilize Sendas Distribuidora's volatility to invest better
Higher Sendas Distribuidora's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sendas Distribuidora 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. Sendas Distribuidora 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 Sendas Distribuidora investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sendas Distribuidora'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 Sendas Distribuidora's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sendas Distribuidora Investment Opportunity
Sendas Distribuidora SA has a volatility of 2.65 and is 3.08 times more volatile than Dow Jones Industrial. 23 percent of all equities and portfolios are less risky than Sendas Distribuidora. You can use Sendas Distribuidora SA to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Sendas Distribuidora to be traded at $5.06 in 90 days.Good diversification
The correlation between Sendas Distribuidora SA and DJI is -0.12 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sendas Distribuidora SA and DJI in the same portfolio, assuming nothing else is changed.
Sendas Distribuidora Additional Risk Indicators
The analysis of Sendas Distribuidora'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 Sendas Distribuidora's investment and either accepting that risk or mitigating it. Along with some common measures of Sendas Distribuidora 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 | 0.0109 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.77 | |||
| Coefficient Of Variation | 20706.61 | |||
| Standard Deviation | 2.61 | |||
| Variance | 6.83 | |||
| Information Ratio | 0.015 |
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 delisted stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Sendas Distribuidora 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 Sendas Distribuidora 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. Sendas Distribuidora'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, Sendas Distribuidora'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 Sendas Distribuidora SA.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Consideration for investing in Sendas Stock
If you are still planning to invest in Sendas Distribuidora check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Sendas Distribuidora's history and understand the potential risks before investing.
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