Elixinol Wellness (Germany) Volatility
| E8M Stock | EUR 0.02 0 10.00% |
Elixinol Wellness is out of control given 3 months investment horizon. Elixinol Wellness secures Sharpe Ratio (or Efficiency) of 0.14, which denotes the company had a 0.14% return per unit of risk over the last 3 months. We were able to interpolate twenty-eight different technical indicators, which can help you to evaluate if expected returns of 6.98% are justified by taking the suggested risk. Use Elixinol Wellness Coefficient Of Variation of 738.54, mean deviation of 17.61, and Downside Deviation of 37.04 to evaluate company specific risk that cannot be diversified away. Key indicators related to Elixinol Wellness' volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Elixinol Wellness 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 Elixinol daily returns, and it is calculated using variance and standard deviation. We also use Elixinol's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Elixinol Wellness volatility.
Elixinol |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Elixinol Wellness 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 Elixinol Wellness at lower prices to lower their average cost per share. Similarly, when the prices of Elixinol Wellness' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Elixinol Stock
| 0.71 | HO1 | Hologic | PairCorr |
| 0.49 | MRK | Merck Company | PairCorr |
| 0.42 | TKDA | Takeda Pharmaceutical | PairCorr |
| 0.32 | LDZU | ASPEN PHARUNADR 1 | PairCorr |
Elixinol Wellness Market Sensitivity And Downside Risk
Elixinol Wellness' beta coefficient measures the volatility of Elixinol 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 Elixinol stock's returns against your selected market. In other words, Elixinol Wellness's beta of -5.97 provides an investor with an approximation of how much risk Elixinol Wellness stock can potentially add to one of your existing portfolios. Elixinol Wellness Limited is showing large volatility of returns over the selected time horizon. Elixinol Wellness Limited is a penny stock. Although Elixinol Wellness 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 Elixinol Wellness Limited. 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 Elixinol 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 Elixinol Wellness Demand TrendCheck current 90 days Elixinol Wellness correlation with market (Dow Jones Industrial)Elixinol Beta |
Elixinol 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 | 50.74 |
It is essential to understand the difference between upside risk (as represented by Elixinol Wellness's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Elixinol Wellness' daily returns or price. Since the actual investment returns on holding a position in elixinol 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 Elixinol Wellness.
Elixinol Wellness Stock Volatility Analysis
Volatility refers to the frequency at which Elixinol Wellness stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Elixinol Wellness' price changes. Investors will then calculate the volatility of Elixinol Wellness' 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 Elixinol Wellness' volatility:
Historical Volatility
This type of stock volatility measures Elixinol Wellness' fluctuations based on previous trends. It's commonly used to predict Elixinol Wellness' 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 Elixinol Wellness' 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 Elixinol Wellness' 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. Elixinol Wellness 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.
Elixinol Wellness Projected Return Density Against Market
Assuming the 90 days horizon Elixinol Wellness Limited has a beta of -5.9725 suggesting as returns on its benchmark rise, returns on holding Elixinol Wellness Limited are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Elixinol Wellness is expected to outperform its benchmark.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 Elixinol Wellness or Healthcare 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 Elixinol Wellness' 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 Elixinol 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.
Elixinol Wellness Limited has an alpha of 6.9633, implying that it can generate a 6.96 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Elixinol Wellness 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.Elixinol Wellness Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Elixinol Wellness is 727.23. The daily returns are distributed with a variance of 2574.61 and standard deviation of 50.74. The mean deviation of Elixinol Wellness Limited is currently at 18.12. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | 6.96 | |
β | Beta against Dow Jones | -5.97 | |
σ | Overall volatility | 50.74 | |
Ir | Information ratio | 0.13 |
Elixinol Wellness Stock Return Volatility
Elixinol Wellness historical daily return volatility represents how much of Elixinol Wellness stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 50.7406% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8097% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Elixinol Wellness Volatility
Volatility is a rate at which the price of Elixinol Wellness 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 Elixinol Wellness may increase or decrease. In other words, similar to Elixinol's beta indicator, it measures the risk of Elixinol Wellness and helps estimate the fluctuations that may happen in a short period of time. So if prices of Elixinol Wellness 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.Elixinol Wellness Limited, through its subsidiaries, manufactures and distributes industrial hemp-based nutraceutical, dietary supplements, and skincare products in the Americas, Europe, and Australia. The company was incorporated in 2017 and is headquartered in Sydney, Australia. ELIXINOL GLOBAL operates under Drug ManufacturersSpecialty Generic classification in Germany and is traded on Frankfurt Stock Exchange.
Elixinol Wellness' 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 Elixinol Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Elixinol Wellness' price varies over time.
3 ways to utilize Elixinol Wellness' volatility to invest better
Higher Elixinol Wellness' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Elixinol Wellness 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. Elixinol Wellness 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 Elixinol Wellness investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Elixinol Wellness' 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 Elixinol Wellness' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Elixinol Wellness Investment Opportunity
Elixinol Wellness Limited has a volatility of 50.74 and is 62.64 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Elixinol Wellness Limited is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Elixinol Wellness Limited to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Elixinol Wellness to be traded at €0.0275 in 90 days.Good diversification
The correlation between Elixinol Wellness Limited and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Wellness Limited and DJI in the same portfolio, assuming nothing else is changed.
Elixinol Wellness Additional Risk Indicators
The analysis of Elixinol Wellness' 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 Elixinol Wellness' investment and either accepting that risk or mitigating it. Along with some common measures of Elixinol Wellness 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 | 0.1181 | |||
| Market Risk Adjusted Performance | (1.12) | |||
| Mean Deviation | 17.61 | |||
| Semi Deviation | 11.52 | |||
| Downside Deviation | 37.04 | |||
| Coefficient Of Variation | 738.54 | |||
| Standard Deviation | 49.97 |
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.
Elixinol Wellness 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 Elixinol Wellness 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. Elixinol Wellness' 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, Elixinol Wellness' 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 Elixinol Wellness Limited.
Complementary Tools for Elixinol Stock analysis
When running Elixinol Wellness' price analysis, check to measure Elixinol Wellness' 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 Elixinol Wellness is operating at the current time. Most of Elixinol Wellness' value examination focuses on studying past and present price action to predict the probability of Elixinol Wellness' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Elixinol Wellness' price. Additionally, you may evaluate how the addition of Elixinol Wellness to your portfolios can decrease your overall portfolio volatility.
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |