General Engineering (Thailand) Volatility
| GEL Stock | THB 0.10 0.01 11.11% |
General Engineering is out of control given 3 months investment horizon. General Engineering holds Efficiency (Sharpe) Ratio of 0.11, which attests that the entity had a 0.11% return per unit of risk over the last 3 months. We were able to break down and interpolate twenty-nine different technical indicators, which can help you to evaluate if expected returns of 14.5% are justified by taking the suggested risk. Use General Engineering Public Market Risk Adjusted Performance of (0.14), risk adjusted performance of 0.0353, and Downside Deviation of 8.92 to evaluate company specific risk that cannot be diversified away. Key indicators related to General Engineering's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
General Engineering 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 General daily returns, and it is calculated using variance and standard deviation. We also use General's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of General Engineering volatility.
General |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of General Engineering at lower prices. For example, an investor can purchase General stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
General Engineering Market Sensitivity And Downside Risk
General Engineering's beta coefficient measures the volatility of General 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 General stock's returns against your selected market. In other words, General Engineering's beta of -1.61 provides an investor with an approximation of how much risk General Engineering stock can potentially add to one of your existing portfolios. General Engineering Public is displaying above-average volatility over the selected time horizon. General Engineering Public is a potential penny stock. Although General Engineering 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 General Engineering Public. 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 General 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 General Engineering Demand TrendCheck current 90 days General Engineering correlation with market (Dow Jones Industrial)General Beta |
General 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 | 126.98 |
It is essential to understand the difference between upside risk (as represented by General Engineering's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of General Engineering's daily returns or price. Since the actual investment returns on holding a position in general 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 General Engineering.
General Engineering Stock Volatility Analysis
Volatility refers to the frequency at which General Engineering stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with General Engineering's price changes. Investors will then calculate the volatility of General Engineering'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 General Engineering's volatility:
Historical Volatility
This type of stock volatility measures General Engineering's fluctuations based on previous trends. It's commonly used to predict General Engineering'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 General Engineering'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 General Engineering'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. General Engineering 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.
General Engineering Projected Return Density Against Market
Assuming the 90 days trading horizon General Engineering Public has a beta of -1.6075 . This usually indicates as returns on its benchmark rise, returns on holding General Engineering Public are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, General Engineering 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 General Engineering or Construction Materials 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 General Engineering'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 General 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.
General Engineering Public has an alpha of 0.4295, implying that it can generate a 0.43 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a General Engineering 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.General Engineering Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of General Engineering is 875.56. The daily returns are distributed with a variance of 16122.9 and standard deviation of 126.98. The mean deviation of General Engineering Public is currently at 31.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.43 | |
β | Beta against Dow Jones | -1.61 | |
σ | Overall volatility | 126.98 | |
Ir | Information ratio | 0.02 |
General Engineering Stock Return Volatility
General Engineering historical daily return volatility represents how much of General Engineering stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 126.976% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About General Engineering Volatility
Volatility is a rate at which the price of General Engineering 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 General Engineering may increase or decrease. In other words, similar to General's beta indicator, it measures the risk of General Engineering and helps estimate the fluctuations that may happen in a short period of time. So if prices of General Engineering 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.General Engineering Public Company Limited manufactures and sells concrete products in Thailand. The company was founded in 1962 and is headquartered in Pathum Thani, Thailand. GENERAL ENGINEERING operates under Building Materials classification in Thailand and is traded on Stock Exchange of Thailand. It employs 1077 people.
General Engineering'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 General Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much General Engineering's price varies over time.
3 ways to utilize General Engineering's volatility to invest better
Higher General Engineering's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of General Engineering 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. General Engineering 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 General Engineering investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in General Engineering'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 General Engineering's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
General Engineering Investment Opportunity
General Engineering Public has a volatility of 126.98 and is 169.31 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than General Engineering. You can use General Engineering Public to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of General Engineering to be traded at 0.125 in 90 days.Good diversification
The correlation between General Engineering Public and DJI is -0.17 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding General Engineering Public and DJI in the same portfolio, assuming nothing else is changed.
General Engineering Additional Risk Indicators
The analysis of General Engineering'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 General Engineering's investment and either accepting that risk or mitigating it. Along with some common measures of General Engineering 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 | 0.0353 | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 4.57 | |||
| Semi Deviation | 4.76 | |||
| Downside Deviation | 8.92 | |||
| Coefficient Of Variation | 2905.27 | |||
| Standard Deviation | 7.38 |
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.
General Engineering 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 General Engineering 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. General Engineering'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, General Engineering'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 General Engineering Public.
Other Information on Investing in General Stock
General Engineering financial ratios help investors to determine whether General Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in General with respect to the benefits of owning General Engineering security.