Digitalist Group (Finland) Volatility
| DIGIGR Stock | EUR 0.02 0.0004 2.60% |
Digitalist Group is out of control given 3 months investment horizon. Digitalist Group Oyj secures Sharpe Ratio (or Efficiency) of 0.17, which denotes the company had a 0.17% return per unit of risk over the last 3 months. We were able to analyze and collect data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.4% are justified by taking the suggested risk. Use Digitalist Group Coefficient Of Variation of 615.0, mean deviation of 4.83, and Downside Deviation of 6.34 to evaluate company specific risk that cannot be diversified away. Key indicators related to Digitalist Group's volatility include:
690 Days Market Risk | Chance Of Distress | 690 Days Economic Sensitivity |
Digitalist Group 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 Digitalist daily returns, and it is calculated using variance and standard deviation. We also use Digitalist's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Digitalist Group volatility.
Digitalist |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Digitalist Group 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 Digitalist Group at lower prices to lower their average cost per share. Similarly, when the prices of Digitalist Group's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Digitalist Stock
Moving against Digitalist Stock
Digitalist Group Market Sensitivity And Downside Risk
Digitalist Group's beta coefficient measures the volatility of Digitalist 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 Digitalist stock's returns against your selected market. In other words, Digitalist Group's beta of 0.84 provides an investor with an approximation of how much risk Digitalist Group stock can potentially add to one of your existing portfolios. Digitalist Group Oyj is displaying above-average volatility over the selected time horizon. Digitalist Group Oyj is a penny stock. Although Digitalist Group 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 Digitalist Group Oyj. 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 Digitalist 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 Digitalist Group Oyj Demand TrendCheck current 90 days Digitalist Group correlation with market (Dow Jones Industrial)Digitalist Beta |
Digitalist 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 | 8.28 |
It is essential to understand the difference between upside risk (as represented by Digitalist Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Digitalist Group's daily returns or price. Since the actual investment returns on holding a position in digitalist 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 Digitalist Group.
Digitalist Group Oyj Stock Volatility Analysis
Volatility refers to the frequency at which Digitalist Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Digitalist Group's price changes. Investors will then calculate the volatility of Digitalist Group'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 Digitalist Group's volatility:
Historical Volatility
This type of stock volatility measures Digitalist Group's fluctuations based on previous trends. It's commonly used to predict Digitalist Group'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 Digitalist Group'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 Digitalist Group'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. Digitalist Group Oyj 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.
Digitalist Group Projected Return Density Against Market
Assuming the 90 days trading horizon Digitalist Group has a beta of 0.8361 suggesting as returns on the market go up, Digitalist Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Digitalist Group Oyj 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 Digitalist Group or IT Services 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 Digitalist Group'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 Digitalist 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.
Digitalist Group Oyj has an alpha of 1.2317, implying that it can generate a 1.23 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Digitalist Group 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.Digitalist Group Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Digitalist Group is 592.59. The daily returns are distributed with a variance of 68.55 and standard deviation of 8.28. The mean deviation of Digitalist Group Oyj is currently at 4.86. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 1.23 | |
β | Beta against Dow Jones | 0.84 | |
σ | Overall volatility | 8.28 | |
Ir | Information ratio | 0.15 |
Digitalist Group Stock Return Volatility
Digitalist Group historical daily return volatility represents how much of Digitalist Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 8.2795% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Digitalist Group Volatility
Volatility is a rate at which the price of Digitalist Group 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 Digitalist Group may increase or decrease. In other words, similar to Digitalist's beta indicator, it measures the risk of Digitalist Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of Digitalist Group 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.Digitalist Group Plc provides digital solutions and consulting services in Europe, the United States, and Asia. The company was formerly known as Ixonos plc and changed its name to Digitalist Group Plc in May 2017. Digitalist Group operates under Software - Application classification in Finland and is traded on Helsinki Exchange. It employs 270 people.
Digitalist Group'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 Digitalist Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Digitalist Group's price varies over time.
3 ways to utilize Digitalist Group's volatility to invest better
Higher Digitalist Group's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Digitalist Group Oyj 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. Digitalist Group Oyj 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 Digitalist Group Oyj investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Digitalist Group'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 Digitalist Group's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Digitalist Group Investment Opportunity
Digitalist Group Oyj has a volatility of 8.28 and is 11.19 times more volatile than Dow Jones Industrial. 73 percent of all equities and portfolios are less risky than Digitalist Group. You can use Digitalist Group Oyj to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Digitalist Group to be traded at €0.019 in 90 days.Significant diversification
The correlation between Digitalist Group Oyj and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Digitalist Group Oyj and DJI in the same portfolio, assuming nothing else is changed.
Digitalist Group Additional Risk Indicators
The analysis of Digitalist Group'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 Digitalist Group's investment and either accepting that risk or mitigating it. Along with some common measures of Digitalist Group 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 | 0.1337 | |||
| Market Risk Adjusted Performance | 1.6 | |||
| Mean Deviation | 4.83 | |||
| Semi Deviation | 4.68 | |||
| Downside Deviation | 6.34 | |||
| Coefficient Of Variation | 615.0 | |||
| Standard Deviation | 8.23 |
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.
Digitalist Group 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 Digitalist Group 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. Digitalist Group'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, Digitalist Group'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 Digitalist Group Oyj.
Complementary Tools for Digitalist Stock analysis
When running Digitalist Group's price analysis, check to measure Digitalist Group'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 Digitalist Group is operating at the current time. Most of Digitalist Group's value examination focuses on studying past and present price action to predict the probability of Digitalist Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Digitalist Group's price. Additionally, you may evaluate how the addition of Digitalist Group to your portfolios can decrease your overall portfolio volatility.
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |