Far East (Germany) Volatility
| F6H Stock | EUR 0.62 0.01 1.59% |
Far East is out of control given 3 months investment horizon. Far East Horizon secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had a 0.15% return per unit of risk over the last 3 months. We were able to interpolate thirty different technical indicators, which can help you to evaluate if expected returns of 1.57% are justified by taking the suggested risk. Use Far East Downside Deviation of 4.04, coefficient of variation of 637.45, and Mean Deviation of 3.19 to evaluate company specific risk that cannot be diversified away. Key indicators related to Far East's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Far East 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 Far daily returns, and it is calculated using variance and standard deviation. We also use Far's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Far East volatility.
Far |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Far East 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 Far East at lower prices to lower their average cost per share. Similarly, when the prices of Far East's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Far Stock
| 0.57 | BYRA | PT Bank Rakyat | PairCorr |
| 0.41 | OB8 | PT Barito Pacific | PairCorr |
| 0.4 | BZG2 | PT Bank Central | PairCorr |
| 0.32 | TCID | Telkom Indonesia Tbk | PairCorr |
Far East Market Sensitivity And Downside Risk
Far East's beta coefficient measures the volatility of Far 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 Far stock's returns against your selected market. In other words, Far East's beta of 0.52 provides an investor with an approximation of how much risk Far East stock can potentially add to one of your existing portfolios. Far East Horizon is displaying above-average volatility over the selected time horizon. Far East Horizon is a potential penny stock. Although Far East may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Far East Horizon. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Far 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 Far East Horizon Demand TrendCheck current 90 days Far East correlation with market (Dow Jones Industrial)Far Beta |
Far 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 | 10.37 |
It is essential to understand the difference between upside risk (as represented by Far East's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Far East's daily returns or price. Since the actual investment returns on holding a position in far 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 Far East.
Far East Horizon Stock Volatility Analysis
Volatility refers to the frequency at which Far East stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Far East's price changes. Investors will then calculate the volatility of Far East'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 Far East's volatility:
Historical Volatility
This type of stock volatility measures Far East's fluctuations based on previous trends. It's commonly used to predict Far East'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 Far East'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 Far East'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. Far East Horizon 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.
Far East Projected Return Density Against Market
Assuming the 90 days horizon Far East has a beta of 0.5221 . This usually indicates as returns on the market go up, Far East average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Far East Horizon 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 Far East 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 Far East'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 Far 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.
Far East Horizon has an alpha of 1.6062, implying that it can generate a 1.61 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Far East 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.Far East Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Far East is 660.12. The daily returns are distributed with a variance of 107.63 and standard deviation of 10.37. The mean deviation of Far East Horizon is currently at 3.15. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 1.61 | |
β | Beta against Dow Jones | 0.52 | |
σ | Overall volatility | 10.37 | |
Ir | Information ratio | 0.15 |
Far East Stock Return Volatility
Far East historical daily return volatility represents how much of Far East stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 10.3746% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8045% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Far East Volatility
Volatility is a rate at which the price of Far East 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 Far East may increase or decrease. In other words, similar to Far's beta indicator, it measures the risk of Far East and helps estimate the fluctuations that may happen in a short period of time. So if prices of Far East 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.Far East Horizon Limited, together with its subsidiaries, provides various financial services in Mainland China, Hong Kong, and internationally. Far East Horizon Limited was incorporated in 2008 and is headquartered in Wan Chai, Hong Kong. FAR EAST operates under Specialty Finance classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12813 people.
Far East'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 Far Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Far East's price varies over time.
3 ways to utilize Far East's volatility to invest better
Higher Far East's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Far East Horizon 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. Far East Horizon 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 Far East Horizon investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Far East'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 Far East's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Far East Investment Opportunity
Far East Horizon has a volatility of 10.37 and is 12.96 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Far East Horizon is higher than 92 percent of all global equities and portfolios over the last 90 days. You can use Far East Horizon to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Far East to be traded at €0.6014 in 90 days.Significant diversification
The correlation between Far East Horizon and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Far East Horizon and DJI in the same portfolio, assuming nothing else is changed.
Far East Additional Risk Indicators
The analysis of Far East'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 Far East's investment and either accepting that risk or mitigating it. Along with some common measures of Far East 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 | 0.1335 | |||
| Market Risk Adjusted Performance | 3.11 | |||
| Mean Deviation | 3.19 | |||
| Semi Deviation | 1.39 | |||
| Downside Deviation | 4.04 | |||
| Coefficient Of Variation | 637.45 | |||
| Standard Deviation | 10.38 |
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.
Far East 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 Far East 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. Far East'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, Far East'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 Far East Horizon.
Complementary Tools for Far Stock analysis
When running Far East's price analysis, check to measure Far East'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 Far East is operating at the current time. Most of Far East's value examination focuses on studying past and present price action to predict the probability of Far East's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Far East's price. Additionally, you may evaluate how the addition of Far East to your portfolios can decrease your overall portfolio volatility.
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |