Avenir Telecom (France) Volatility
AVT Stock | EUR 0.07 0.0007 0.99% |
Avenir Telecom SA secures Sharpe Ratio (or Efficiency) of -0.15, which signifies that the company had a -0.15% return per unit of standard deviation over the last 3 months. Avenir Telecom SA exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Avenir Telecom's risk adjusted performance of (0.09), and Mean Deviation of 1.84 to double-check the risk estimate we provide. Key indicators related to Avenir Telecom's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Avenir Telecom 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 Avenir daily returns, and it is calculated using variance and standard deviation. We also use Avenir's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Avenir Telecom volatility.
Avenir |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Avenir Telecom 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 Avenir Telecom at lower prices to lower their average cost per share. Similarly, when the prices of Avenir Telecom's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
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Moving against Avenir Stock
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Avenir Telecom Market Sensitivity And Downside Risk
Avenir Telecom's beta coefficient measures the volatility of Avenir 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 Avenir stock's returns against your selected market. In other words, Avenir Telecom's beta of -0.62 provides an investor with an approximation of how much risk Avenir Telecom stock can potentially add to one of your existing portfolios. Avenir Telecom SA exhibits very low volatility with skewness of 0.12 and kurtosis of 1.01. Avenir Telecom SA is a penny stock. Although Avenir Telecom may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Avenir Telecom SA. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Avenir instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Avenir Telecom SA Demand TrendCheck current 90 days Avenir Telecom correlation with market (Dow Jones Industrial)Avenir Beta |
Avenir 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 | 2.53 |
It is essential to understand the difference between upside risk (as represented by Avenir Telecom's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Avenir Telecom's daily returns or price. Since the actual investment returns on holding a position in avenir 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 Avenir Telecom.
Avenir Telecom SA Stock Volatility Analysis
Volatility refers to the frequency at which Avenir Telecom stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Avenir Telecom's price changes. Investors will then calculate the volatility of Avenir Telecom'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 Avenir Telecom's volatility:
Historical Volatility
This type of stock volatility measures Avenir Telecom's fluctuations based on previous trends. It's commonly used to predict Avenir Telecom'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 Avenir Telecom'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 Avenir Telecom'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. Avenir Telecom SA 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.
Avenir Telecom Projected Return Density Against Market
Assuming the 90 days trading horizon Avenir Telecom SA has a beta of -0.623 . This suggests as returns on the benchmark increase, returns on holding Avenir Telecom are expected to decrease at a much lower rate. During a bear market, however, Avenir Telecom 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 Avenir Telecom or Technology 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 Avenir Telecom'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 Avenir 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.
Avenir Telecom 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 an Avenir Telecom 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.Avenir Telecom Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Avenir Telecom is -673.36. The daily returns are distributed with a variance of 6.39 and standard deviation of 2.53. The mean deviation of Avenir Telecom SA is currently at 1.86. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | -0.27 | |
β | Beta against Dow Jones | -0.62 | |
σ | Overall volatility | 2.53 | |
Ir | Information ratio | -0.19 |
Avenir Telecom Stock Return Volatility
Avenir Telecom historical daily return volatility represents how much of Avenir Telecom stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 2.5275% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7364% volatility on return distribution over the 90 days horizon. Performance |
Timeline |
About Avenir Telecom Volatility
Volatility is a rate at which the price of Avenir Telecom 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 Avenir Telecom may increase or decrease. In other words, similar to Avenir's beta indicator, it measures the risk of Avenir Telecom and helps estimate the fluctuations that may happen in a short period of time. So if prices of Avenir Telecom 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.Avenir Telecom S.A. retails and distributes mobiles, smartphones, and accessories. Avenir Telecom S.A. was founded in 1989 and is based in Marseille, France. AVENIR TELECOM is traded on Paris Stock Exchange in France.
Avenir Telecom'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 Avenir Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Avenir Telecom's price varies over time.
3 ways to utilize Avenir Telecom's volatility to invest better
Higher Avenir Telecom's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Avenir Telecom SA 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. Avenir Telecom SA 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 Avenir Telecom SA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Avenir Telecom'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 Avenir Telecom's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Avenir Telecom Investment Opportunity
Avenir Telecom SA has a volatility of 2.53 and is 3.42 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than Avenir Telecom. You can use Avenir Telecom SA 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 Avenir Telecom to be traded at 0.0687 in 90 days.Good diversification
The correlation between Avenir Telecom SA and DJI is -0.18 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Avenir Telecom SA and DJI in the same portfolio, assuming nothing else is changed.
Avenir Telecom Additional Risk Indicators
The analysis of Avenir Telecom'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 Avenir Telecom's investment and either accepting that risk or mitigating it. Along with some common measures of Avenir Telecom 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 | (0.09) | |||
Market Risk Adjusted Performance | 0.5723 | |||
Mean Deviation | 1.84 | |||
Coefficient Of Variation | (734.64) | |||
Standard Deviation | 2.5 | |||
Variance | 6.25 | |||
Information Ratio | (0.19) |
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.
Avenir Telecom 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 Avenir Telecom 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. Avenir Telecom'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, Avenir Telecom'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 Avenir Telecom SA.
Complementary Tools for Avenir Stock analysis
When running Avenir Telecom's price analysis, check to measure Avenir Telecom'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 Avenir Telecom is operating at the current time. Most of Avenir Telecom's value examination focuses on studying past and present price action to predict the probability of Avenir Telecom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Avenir Telecom's price. Additionally, you may evaluate how the addition of Avenir Telecom to your portfolios can decrease your overall portfolio volatility.
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