Otokar Otomotiv (Turkey) Volatility
| OTKAR Stock | TRY 475.00 3.75 0.78% |
Otokar Otomotiv is very steady at the moment. Otokar Otomotiv ve maintains Sharpe Ratio (i.e., Efficiency) of 0.0504, which implies the firm had a 0.0504% return per unit of risk over the last 3 months. We have found thirty technical indicators for Otokar Otomotiv ve, which you can use to evaluate the volatility of the company. Please check Otokar Otomotiv's Coefficient Of Variation of 1350.18, semi deviation of 1.5, and Risk Adjusted Performance of 0.0604 to confirm if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to Otokar Otomotiv's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Otokar Otomotiv 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 Otokar daily returns, and it is calculated using variance and standard deviation. We also use Otokar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Otokar Otomotiv volatility.
Otokar |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Otokar Otomotiv at lower prices. For example, an investor can purchase Otokar 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 Otokar Stock
| 0.71 | AKBNK | Akbank TAS | PairCorr |
| 0.64 | ISCTR | Turkiye Is Bankasi | PairCorr |
| 0.61 | HALKB | Turkiye Halk Bankasi | PairCorr |
| 0.8 | KCHOL | Koc Holding AS | PairCorr |
| 0.62 | YKBNK | Yapi ve Kredi | PairCorr |
Otokar Otomotiv Market Sensitivity And Downside Risk
Otokar Otomotiv's beta coefficient measures the volatility of Otokar 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 Otokar stock's returns against your selected market. In other words, Otokar Otomotiv's beta of 0.24 provides an investor with an approximation of how much risk Otokar Otomotiv stock can potentially add to one of your existing portfolios. Otokar Otomotiv ve has relatively low volatility with skewness of 1.45 and kurtosis of 5.77. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Otokar Otomotiv'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 Otokar Otomotiv'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 Otokar Otomotiv ve Demand TrendCheck current 90 days Otokar Otomotiv correlation with market (Dow Jones Industrial)Otokar Beta |
Otokar 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 | 2.14 |
It is essential to understand the difference between upside risk (as represented by Otokar Otomotiv's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Otokar Otomotiv's daily returns or price. Since the actual investment returns on holding a position in otokar 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 Otokar Otomotiv.
Otokar Otomotiv ve Stock Volatility Analysis
Volatility refers to the frequency at which Otokar Otomotiv stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Otokar Otomotiv's price changes. Investors will then calculate the volatility of Otokar Otomotiv'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 Otokar Otomotiv's volatility:
Historical Volatility
This type of stock volatility measures Otokar Otomotiv's fluctuations based on previous trends. It's commonly used to predict Otokar Otomotiv'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 Otokar Otomotiv'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 Otokar Otomotiv'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. Otokar Otomotiv ve 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.
Otokar Otomotiv Projected Return Density Against Market
Assuming the 90 days trading horizon Otokar Otomotiv has a beta of 0.2391 . This indicates as returns on the market go up, Otokar Otomotiv average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Otokar Otomotiv ve 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 Otokar Otomotiv or Machinery 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 Otokar Otomotiv'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 Otokar 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.
Otokar Otomotiv ve has an alpha of 0.1248, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Otokar Otomotiv 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.Otokar Otomotiv Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Otokar Otomotiv is 1984.22. The daily returns are distributed with a variance of 4.59 and standard deviation of 2.14. The mean deviation of Otokar Otomotiv ve is currently at 1.5. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | 0.24 | |
σ | Overall volatility | 2.14 | |
Ir | Information ratio | 0.02 |
Otokar Otomotiv Stock Return Volatility
Otokar Otomotiv historical daily return volatility represents how much of Otokar Otomotiv stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.1426% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7349% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Otokar Otomotiv Volatility
Volatility is a rate at which the price of Otokar Otomotiv 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 Otokar Otomotiv may increase or decrease. In other words, similar to Otokar's beta indicator, it measures the risk of Otokar Otomotiv and helps estimate the fluctuations that may happen in a short period of time. So if prices of Otokar Otomotiv 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.Otokar Otomotiv ve Savunma Sanayi A.S. operates in the automotive industry in Turkey. The company was founded in 1963 and is headquartered in Istanbul, Turkey. OTOKAR operates under Auto Manufacturers classification in Turkey and is traded on Istanbul Stock Exchange. It employs 2035 people.
Otokar Otomotiv'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 Otokar Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Otokar Otomotiv's price varies over time.
3 ways to utilize Otokar Otomotiv's volatility to invest better
Higher Otokar Otomotiv's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Otokar Otomotiv ve 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. Otokar Otomotiv ve 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 Otokar Otomotiv ve investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Otokar Otomotiv'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 Otokar Otomotiv's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Otokar Otomotiv Investment Opportunity
Otokar Otomotiv ve has a volatility of 2.14 and is 2.93 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than Otokar Otomotiv. You can use Otokar Otomotiv ve to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Otokar Otomotiv to be traded at 465.5 in 90 days.Significant diversification
The correlation between Otokar Otomotiv ve and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Otokar Otomotiv ve and DJI in the same portfolio, assuming nothing else is changed.
Otokar Otomotiv Additional Risk Indicators
The analysis of Otokar Otomotiv'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 Otokar Otomotiv's investment and either accepting that risk or mitigating it. Along with some common measures of Otokar Otomotiv 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 | 0.0604 | |||
| Market Risk Adjusted Performance | 0.6338 | |||
| Mean Deviation | 1.54 | |||
| Semi Deviation | 1.5 | |||
| Downside Deviation | 1.64 | |||
| Coefficient Of Variation | 1350.18 | |||
| Standard Deviation | 2.15 |
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.
Otokar Otomotiv 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 Otokar Otomotiv 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. Otokar Otomotiv'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, Otokar Otomotiv'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 Otokar Otomotiv ve.
Complementary Tools for Otokar Stock analysis
When running Otokar Otomotiv's price analysis, check to measure Otokar Otomotiv'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 Otokar Otomotiv is operating at the current time. Most of Otokar Otomotiv's value examination focuses on studying past and present price action to predict the probability of Otokar Otomotiv's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Otokar Otomotiv's price. Additionally, you may evaluate how the addition of Otokar Otomotiv to your portfolios can decrease your overall portfolio volatility.
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