Ihlas Holding (Turkey) Volatility

IHLAS Stock  TRY 3.42  0.31  9.97%   
Ihlas Holding is very risky given 3 months investment horizon. Ihlas Holding AS holds Efficiency (Sharpe) Ratio of 0.32, which attests that the entity had a 0.32% return per unit of risk over the last 3 months. We were able to collect and analyze data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.9% are justified by taking the suggested risk. Use Ihlas Holding AS Downside Deviation of 5.14, market risk adjusted performance of 1.05, and Risk Adjusted Performance of 0.262 to evaluate company specific risk that cannot be diversified away. Key indicators related to Ihlas Holding's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Ihlas Holding 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 Ihlas daily returns, and it is calculated using variance and standard deviation. We also use Ihlas's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ihlas Holding volatility.
  
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Ihlas Holding at lower prices. For example, an investor can purchase Ihlas 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.

Moving together with Ihlas Stock

  0.66AKBNK Akbank TASPairCorr
  0.61ISCTR Turkiye Is BankasiPairCorr
  0.79KCHOL Koc Holding ASPairCorr
  0.65YKBNK Yapi ve KrediPairCorr

Moving against Ihlas Stock

  0.38ARASE Dogu Aras EnerjiPairCorr

Ihlas Holding Market Sensitivity And Downside Risk

Ihlas Holding's beta coefficient measures the volatility of Ihlas 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 Ihlas stock's returns against your selected market. In other words, Ihlas Holding's beta of 1.79 provides an investor with an approximation of how much risk Ihlas Holding stock can potentially add to one of your existing portfolios. Ihlas Holding AS shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ihlas Holding'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 Ihlas Holding'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 Ihlas Holding AS Demand Trend
Check current 90 days Ihlas Holding correlation with market (Dow Jones Industrial)

Ihlas Beta

    
  1.79  
Ihlas 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

    
  5.89  
It is essential to understand the difference between upside risk (as represented by Ihlas Holding's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ihlas Holding's daily returns or price. Since the actual investment returns on holding a position in ihlas 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 Ihlas Holding.

Ihlas Holding AS Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Ihlas Holding's fluctuations based on previous trends. It's commonly used to predict Ihlas Holding'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 Ihlas Holding'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 Ihlas Holding'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. Ihlas Holding AS 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.

Ihlas Holding Projected Return Density Against Market

Assuming the 90 days trading horizon the stock has the beta coefficient of 1.7944 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Ihlas Holding will likely underperform.
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 Ihlas Holding or Industrial Conglomerates 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 Ihlas Holding'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 Ihlas 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.
Ihlas Holding AS has an alpha of 1.822, implying that it can generate a 1.82 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Ihlas Holding's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how ihlas 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 an Ihlas Holding 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.

Ihlas Holding Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Ihlas Holding is 310.02. The daily returns are distributed with a variance of 34.71 and standard deviation of 5.89. The mean deviation of Ihlas Holding AS is currently at 4.81. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
1.82
β
Beta against Dow Jones1.79
σ
Overall volatility
5.89
Ir
Information ratio 0.31

Ihlas Holding Stock Return Volatility

Ihlas Holding historical daily return volatility represents how much of Ihlas Holding stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 5.8917% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7982% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Ihlas Holding Volatility

Volatility is a rate at which the price of Ihlas Holding 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 Ihlas Holding may increase or decrease. In other words, similar to Ihlas's beta indicator, it measures the risk of Ihlas Holding and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ihlas Holding 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.
Ihlas Holding A.S. engages in the construction and real estate, media and communications, manufacturing and trading, education, and healthcare businesses in Turkey and internationally. The company was founded in 1970 and is headquartered in Istanbul, Turkey. IHLAS HOLDING operates under Conglomerates classification in Turkey and is traded on Istanbul Stock Exchange. It employs 2803 people.
Ihlas Holding'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 Ihlas Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Ihlas Holding's price varies over time.

3 ways to utilize Ihlas Holding's volatility to invest better

Higher Ihlas Holding's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ihlas Holding AS 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. Ihlas Holding AS 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 Ihlas Holding AS investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Ihlas Holding'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 Ihlas Holding'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.

Ihlas Holding Investment Opportunity

Ihlas Holding AS has a volatility of 5.89 and is 7.36 times more volatile than Dow Jones Industrial. 52 percent of all equities and portfolios are less risky than Ihlas Holding. You can use Ihlas Holding AS to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Ihlas Holding to be traded at 4.28 in 90 days.

Modest diversification

The correlation between Ihlas Holding AS and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Holding AS and DJI in the same portfolio, assuming nothing else is changed.

Ihlas Holding Additional Risk Indicators

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

Ihlas Holding 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 Ihlas Holding 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. Ihlas Holding'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, Ihlas Holding'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 Ihlas Holding AS.

Complementary Tools for Ihlas Stock analysis

When running Ihlas Holding's price analysis, check to measure Ihlas Holding'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 Ihlas Holding is operating at the current time. Most of Ihlas Holding's value examination focuses on studying past and present price action to predict the probability of Ihlas Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ihlas Holding's price. Additionally, you may evaluate how the addition of Ihlas Holding to your portfolios can decrease your overall portfolio volatility.
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals