NRC Group (Norway) Volatility
| NRC Stock | NOK 5.34 0.26 4.64% |
NRC Group is risky given 3 months investment horizon. NRC Group ASA retains Efficiency (Sharpe Ratio) of 0.19, which conveys that the firm had a 0.19% return per unit of risk over the last 3 months. We were able to break down twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.06% are justified by taking the suggested risk. Use NRC Group ASA Semi Deviation of 4.21, market risk adjusted performance of (65.33), and Mean Deviation of 4.1 to evaluate company specific risk that cannot be diversified away. Key indicators related to NRC Group's volatility include:
330 Days Market Risk | Chance Of Distress | 330 Days Economic Sensitivity |
NRC Group 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 NRC daily returns, and it is calculated using variance and standard deviation. We also use NRC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of NRC Group volatility.
NRC |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of NRC Group at lower prices. For example, an investor can purchase NRC 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 NRC Stock
Moving against NRC Stock
NRC Group Market Sensitivity And Downside Risk
NRC Group's beta coefficient measures the volatility of NRC 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 NRC stock's returns against your selected market. In other words, NRC Group's beta of -0.0166 provides an investor with an approximation of how much risk NRC Group stock can potentially add to one of your existing portfolios. NRC Group ASA exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure NRC Group'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 NRC Group'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 NRC Group ASA Demand TrendCheck current 90 days NRC Group correlation with market (Dow Jones Industrial)NRC Beta |
NRC 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 | 5.6 |
It is essential to understand the difference between upside risk (as represented by NRC Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of NRC Group's daily returns or price. Since the actual investment returns on holding a position in nrc 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 NRC Group.
NRC Group ASA Stock Volatility Analysis
Volatility refers to the frequency at which NRC Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with NRC Group's price changes. Investors will then calculate the volatility of NRC Group'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 NRC Group's volatility:
Historical Volatility
This type of stock volatility measures NRC Group's fluctuations based on previous trends. It's commonly used to predict NRC Group'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 NRC Group'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 NRC Group'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. NRC Group ASA 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.
NRC Group Projected Return Density Against Market
Assuming the 90 days trading horizon NRC Group ASA has a beta of -0.0166 . This indicates as returns on the benchmark increase, returns on holding NRC Group are expected to decrease at a much lower rate. During a bear market, however, NRC Group ASA is likely to outperform the market.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 NRC Group or Construction & Engineering 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 NRC Group'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 NRC 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.
NRC Group ASA has an alpha of 1.0869, implying that it can generate a 1.09 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a NRC Group 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.NRC Group Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of NRC Group is 526.75. The daily returns are distributed with a variance of 31.35 and standard deviation of 5.6. The mean deviation of NRC Group ASA is currently at 4.1. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 1.09 | |
β | Beta against Dow Jones | -0.02 | |
σ | Overall volatility | 5.60 | |
Ir | Information ratio | 0.17 |
NRC Group Stock Return Volatility
NRC Group historical daily return volatility represents how much of NRC Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 5.5996% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7208% volatility on return distribution over the 90 days horizon. Performance |
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About NRC Group Volatility
Volatility is a rate at which the price of NRC Group 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 NRC Group may increase or decrease. In other words, similar to NRC's beta indicator, it measures the risk of NRC Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of NRC Group 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.NRC Group ASA, together with its subsidiaries, engages in the infrastructure business in Norway, Sweden, and Finland. The company was formerly known as Blom ASA and changed its name to NRC Group ASA in May 2015. NRC GROUP operates under Business Services classification in Norway and is traded on Oslo Stock Exchange. It employs 2489 people.
NRC Group'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 NRC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much NRC Group's price varies over time.
3 ways to utilize NRC Group's volatility to invest better
Higher NRC Group's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of NRC Group ASA 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. NRC Group ASA 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 NRC Group ASA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in NRC Group'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 NRC Group's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
NRC Group Investment Opportunity
NRC Group ASA has a volatility of 5.6 and is 7.78 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of NRC Group ASA is lower than 49 percent of all global equities and portfolios over the last 90 days. You can use NRC Group ASA to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of NRC Group to be traded at 5.07 in 90 days.NRC Group Additional Risk Indicators
The analysis of NRC Group'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 NRC Group's investment and either accepting that risk or mitigating it. Along with some common measures of NRC Group 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 | 0.1535 | |||
| Market Risk Adjusted Performance | (65.33) | |||
| Mean Deviation | 4.1 | |||
| Semi Deviation | 4.21 | |||
| Downside Deviation | 5.0 | |||
| Coefficient Of Variation | 511.49 | |||
| Standard Deviation | 5.6 |
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.
NRC Group 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 NRC Group 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. NRC Group'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, NRC Group'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 NRC Group ASA.
Other Information on Investing in NRC Stock
NRC Group financial ratios help investors to determine whether NRC 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 NRC with respect to the benefits of owning NRC Group security.