Grupo Elektra (Mexico) Volatility

ELEKTRA Stock  MXN 318.33  2.33  0.74%   
Grupo Elektra SAB holds Efficiency (Sharpe) Ratio of -0.081, which attests that the entity had a -0.081% return per unit of risk over the last 3 months. Grupo Elektra SAB exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Grupo Elektra's Standard Deviation of 9.99, market risk adjusted performance of (1.00), and Risk Adjusted Performance of (0.05) to validate the risk estimate we provide. Key indicators related to Grupo Elektra's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Grupo Elektra 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 Grupo daily returns, and it is calculated using variance and standard deviation. We also use Grupo's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Grupo Elektra volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Grupo Elektra 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 Grupo Elektra at lower prices to lower their average cost per share. Similarly, when the prices of Grupo Elektra's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving against Grupo Stock

  0.87STORAGE18 FIBRA StoragePairCorr
  0.87PINFRAL Promotora y OperadoraPairCorr
  0.8TSLA Tesla IncPairCorr
  0.76EDUCA18 Fideicomiso IrrevocablePairCorr

Grupo Elektra Market Sensitivity And Downside Risk

Grupo Elektra's beta coefficient measures the volatility of Grupo 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 Grupo stock's returns against your selected market. In other words, Grupo Elektra's beta of 0.78 provides an investor with an approximation of how much risk Grupo Elektra stock can potentially add to one of your existing portfolios. Grupo Elektra SAB is displaying above-average volatility 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 Grupo Elektra'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 Grupo Elektra'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 Grupo Elektra SAB Demand Trend
Check current 90 days Grupo Elektra correlation with market (Dow Jones Industrial)

Grupo Beta

    
  0.78  
Grupo 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

    
  10.48  
It is essential to understand the difference between upside risk (as represented by Grupo Elektra's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Grupo Elektra's daily returns or price. Since the actual investment returns on holding a position in grupo 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 Grupo Elektra.
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Grupo Elektra SAB Stock Volatility Analysis

Volatility refers to the frequency at which Grupo Elektra stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Grupo Elektra's price changes. Investors will then calculate the volatility of Grupo Elektra'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 Grupo Elektra's volatility:

Historical Volatility

This type of stock volatility measures Grupo Elektra's fluctuations based on previous trends. It's commonly used to predict Grupo Elektra'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 Grupo Elektra'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 Grupo Elektra'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. Grupo Elektra SAB 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.
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JavaScript chart by amCharts 3.21.15Grupo Elektra SAB Volume Grupo Elektra SAB Closing Prices Dow Jones Industrial Closing Prices - Benchmark Grupo Elektra SAB Average Price

Grupo Elektra Projected Return Density Against Market

Assuming the 90 days trading horizon Grupo Elektra has a beta of 0.7772 suggesting as returns on the market go up, Grupo Elektra average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Grupo Elektra SAB 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 Grupo Elektra or Banks 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 Grupo Elektra'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 Grupo 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.
Grupo Elektra SAB 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   
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JavaScript chart by amCharts 3.21.15Grupo Elektra Dow Jones Industrial
       Returns  
Grupo Elektra's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how grupo stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Grupo Elektra 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.

Grupo Elektra Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Grupo Elektra is -1234.81. The daily returns are distributed with a variance of 109.9 and standard deviation of 10.48. The mean deviation of Grupo Elektra SAB is currently at 4.09. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.82
α
Alpha over Dow Jones
-0.78
β
Beta against Dow Jones0.78
σ
Overall volatility
10.48
Ir
Information ratio -0.08

Grupo Elektra Stock Return Volatility

Grupo Elektra historical daily return volatility represents how much of Grupo Elektra stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 10.4835% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8283% volatility on return distribution over the 90 days horizon.
 Performance 
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JavaScript chart by amCharts 3.21.15Equity Market
       Timeline  

About Grupo Elektra Volatility

Volatility is a rate at which the price of Grupo Elektra 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 Grupo Elektra may increase or decrease. In other words, similar to Grupo's beta indicator, it measures the risk of Grupo Elektra and helps estimate the fluctuations that may happen in a short period of time. So if prices of Grupo Elektra 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.
Grupo Elektra, S.A.B. de C.V. operates as a financial services and specialty retailing company in Latin America, as well as a short-term non-bank loan provider in the United States. Grupo Elektra, S.A.B. de C.V. was founded in 1950 and is headquartered in Mexico City, Mexico. GRUPO ELEKTRA operates under Financial Conglomerates classification in Mexico and is traded on Mexico Stock Exchange. It employs 69973 people.
Grupo Elektra'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 Grupo Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Grupo Elektra's price varies over time.

3 ways to utilize Grupo Elektra's volatility to invest better

Higher Grupo Elektra's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Grupo Elektra SAB 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. Grupo Elektra SAB 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 Grupo Elektra SAB investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Grupo Elektra'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 Grupo Elektra's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Grupo Elektra Investment Opportunity

Grupo Elektra SAB has a volatility of 10.48 and is 12.63 times more volatile than Dow Jones Industrial. 93 percent of all equities and portfolios are less risky than Grupo Elektra. You can use Grupo Elektra SAB to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Grupo Elektra to be traded at 350.16 in 90 days.
GrupoDowDiversified AwayGrupoDowDiversified Away100%

Significant diversification

The correlation between Grupo Elektra SAB and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Elektra SAB and DJI in the same portfolio, assuming nothing else is changed.

Grupo Elektra Additional Risk Indicators

The analysis of Grupo Elektra'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 Grupo Elektra's investment and either accepting that risk or mitigating it. Along with some common measures of Grupo Elektra 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.
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.

Grupo Elektra 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 Grupo Elektra 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. Grupo Elektra'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, Grupo Elektra'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 Grupo Elektra SAB.

Complementary Tools for Grupo Stock analysis

When running Grupo Elektra's price analysis, check to measure Grupo Elektra'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 Grupo Elektra is operating at the current time. Most of Grupo Elektra's value examination focuses on studying past and present price action to predict the probability of Grupo Elektra's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Grupo Elektra's price. Additionally, you may evaluate how the addition of Grupo Elektra to your portfolios can decrease your overall portfolio volatility.
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