Eason Technology Limited Stock Volatility
| DXF Stock | USD 7.45 0.05 0.68% |
Eason Technology appears to be extremely dangerous, given 3 months investment horizon. Eason Technology secures Sharpe Ratio (or Efficiency) of 0.0251, which denotes the company had a 0.0251 % return per unit of risk over the last 3 months. By reviewing Eason Technology's technical indicators, you can evaluate if the expected return of 0.81% is justified by implied risk. Please utilize Eason Technology's Mean Deviation of 16.04, downside deviation of 21.0, and Coefficient Of Variation of 3987.97 to check if our risk estimates are consistent with your expectations. Key indicators related to Eason Technology's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Eason Technology 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 Eason daily returns, and it is calculated using variance and standard deviation. We also use Eason's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Eason Technology volatility.
Eason |
ESG Sustainability
While most ESG disclosures are voluntary, Eason Technology's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Eason Technology's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Eason Technology 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 Eason Technology at lower prices to lower their average cost per share. Similarly, when the prices of Eason Technology's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Eason Technology Market Sensitivity And Downside Risk
Eason Technology's beta coefficient measures the volatility of Eason 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 Eason stock's returns against your selected market. In other words, Eason Technology's beta of 0.55 provides an investor with an approximation of how much risk Eason Technology stock can potentially add to one of your existing portfolios. Eason Technology Limited is showing large volatility of returns over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eason Technology'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 Eason Technology'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 Eason Technology Demand TrendCheck current 90 days Eason Technology correlation with market (Dow Jones Industrial)Eason Beta |
Eason 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 | 32.4 |
It is essential to understand the difference between upside risk (as represented by Eason Technology's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eason Technology's daily returns or price. Since the actual investment returns on holding a position in eason 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 Eason Technology.
Eason Technology Stock Volatility Analysis
Volatility refers to the frequency at which Eason Technology stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Eason Technology's price changes. Investors will then calculate the volatility of Eason Technology'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 Eason Technology's volatility:
Historical Volatility
This type of stock volatility measures Eason Technology's fluctuations based on previous trends. It's commonly used to predict Eason Technology'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 Eason Technology'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 Eason Technology'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 fourty-one. Eason Technology 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.
Eason Technology Projected Return Density Against Market
Considering the 90-day investment horizon Eason Technology has a beta of 0.546 suggesting as returns on the market go up, Eason Technology average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Eason Technology Limited 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 Eason Technology or Financial 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 Eason Technology'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 Eason 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.
Eason Technology Limited has an alpha of 0.8225, implying that it can generate a 0.82 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Eason Technology 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.Eason Technology Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Eason Technology is 3987.97. The daily returns are distributed with a variance of 1050.0 and standard deviation of 32.4. The mean deviation of Eason Technology Limited is currently at 16.04. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.9
α | Alpha over Dow Jones | 0.82 | |
β | Beta against Dow Jones | 0.55 | |
σ | Overall volatility | 32.40 | |
Ir | Information ratio | 0.03 |
Eason Technology Stock Return Volatility
Eason Technology historical daily return volatility represents how much of Eason Technology stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 32.4037% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8639% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Eason Technology Volatility
Volatility is a rate at which the price of Eason Technology 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 Eason Technology may increase or decrease. In other words, similar to Eason's beta indicator, it measures the risk of Eason Technology and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eason Technology 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 591.1 K | 358.2 K | |
| Market Cap | 42 M | 39.9 M |
Eason Technology'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 Eason Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Eason Technology's price varies over time.
3 ways to utilize Eason Technology's volatility to invest better
Higher Eason Technology's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Eason Technology 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. Eason Technology 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 Eason Technology investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Eason Technology'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 Eason Technology's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Eason Technology Investment Opportunity
Eason Technology Limited has a volatility of 32.4 and is 37.67 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Eason Technology Limited is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Eason Technology Limited to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Eason Technology to be traded at $8.2 in 90 days.Significant diversification
The correlation between Eason Technology Limited and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eason Technology Limited and DJI in the same portfolio, assuming nothing else is changed.
Eason Technology Additional Risk Indicators
The analysis of Eason Technology'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 Eason Technology's investment and either accepting that risk or mitigating it. Along with some common measures of Eason Technology 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 | 0.0324 | |||
| Market Risk Adjusted Performance | 1.48 | |||
| Mean Deviation | 16.04 | |||
| Semi Deviation | 18.85 | |||
| Downside Deviation | 21.0 | |||
| Coefficient Of Variation | 3987.97 | |||
| Standard Deviation | 32.4 |
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.
Eason Technology 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 Eason Technology 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. Eason Technology'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, Eason Technology'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 Eason Technology Limited.
Complementary Tools for Eason Stock analysis
When running Eason Technology's price analysis, check to measure Eason Technology'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 Eason Technology is operating at the current time. Most of Eason Technology's value examination focuses on studying past and present price action to predict the probability of Eason Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eason Technology's price. Additionally, you may evaluate how the addition of Eason Technology to your portfolios can decrease your overall portfolio volatility.
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