Petkim Petrokimya (Turkey) Volatility
| PETKM Stock | TRY 17.12 1.04 6.47% |
Petkim Petrokimya Holding maintains Sharpe Ratio (i.e., Efficiency) of -0.0464, which implies the firm had a -0.0464 % return per unit of risk over the last 3 months. Petkim Petrokimya Holding exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Petkim Petrokimya's Risk Adjusted Performance of (0.03), coefficient of variation of (2,460), and Variance of 4.21 to confirm the risk estimate we provide. Key indicators related to Petkim Petrokimya's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Petkim Petrokimya 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 Petkim daily returns, and it is calculated using variance and standard deviation. We also use Petkim's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Petkim Petrokimya volatility.
Petkim |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Petkim Petrokimya at lower prices. For example, an investor can purchase Petkim 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 Petkim Stock
| 0.64 | YESIL | Yesil Yatirim Holding | PairCorr |
| 0.68 | YYAPI | Yesil Yapi Endustrisi | PairCorr |
| 0.69 | PAMEL | Pamel Yenilenebilir | PairCorr |
Moving against Petkim Stock
Petkim Petrokimya Market Sensitivity And Downside Risk
Petkim Petrokimya's beta coefficient measures the volatility of Petkim 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 Petkim stock's returns against your selected market. In other words, Petkim Petrokimya's beta of -0.0875 provides an investor with an approximation of how much risk Petkim Petrokimya stock can potentially add to one of your existing portfolios. Petkim Petrokimya Holding exhibits very low volatility with skewness of -0.37 and kurtosis of 4.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Petkim Petrokimya'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 Petkim Petrokimya'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 Petkim Petrokimya Holding Demand TrendCheck current 90 days Petkim Petrokimya correlation with market (Dow Jones Industrial)Petkim Beta |
Petkim 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 | 2.09 |
It is essential to understand the difference between upside risk (as represented by Petkim Petrokimya's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Petkim Petrokimya's daily returns or price. Since the actual investment returns on holding a position in petkim 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 Petkim Petrokimya.
Petkim Petrokimya Holding Stock Volatility Analysis
Volatility refers to the frequency at which Petkim Petrokimya stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Petkim Petrokimya's price changes. Investors will then calculate the volatility of Petkim Petrokimya'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 Petkim Petrokimya's volatility:
Historical Volatility
This type of stock volatility measures Petkim Petrokimya's fluctuations based on previous trends. It's commonly used to predict Petkim Petrokimya'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 Petkim Petrokimya'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 Petkim Petrokimya'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. Petkim Petrokimya Holding 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.
Petkim Petrokimya Projected Return Density Against Market
Assuming the 90 days trading horizon Petkim Petrokimya Holding has a beta of -0.0875 indicating as returns on the benchmark increase, returns on holding Petkim Petrokimya are expected to decrease at a much lower rate. During a bear market, however, Petkim Petrokimya Holding 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 Petkim Petrokimya or Chemicals 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 Petkim Petrokimya'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 Petkim 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.
Petkim Petrokimya Holding has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Petkim Petrokimya 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.Petkim Petrokimya Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Petkim Petrokimya is -2153.54. The daily returns are distributed with a variance of 4.37 and standard deviation of 2.09. The mean deviation of Petkim Petrokimya Holding is currently at 1.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | -0.09 | |
β | Beta against Dow Jones | -0.09 | |
σ | Overall volatility | 2.09 | |
Ir | Information ratio | -0.05 |
Petkim Petrokimya Stock Return Volatility
Petkim Petrokimya historical daily return volatility represents how much of Petkim Petrokimya stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.0899% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8638% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Petkim Petrokimya Volatility
Volatility is a rate at which the price of Petkim Petrokimya 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 Petkim Petrokimya may increase or decrease. In other words, similar to Petkim's beta indicator, it measures the risk of Petkim Petrokimya and helps estimate the fluctuations that may happen in a short period of time. So if prices of Petkim Petrokimya 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.Petkim Petrokimya Holding Anonim Sirketi operates as a petrochemical company in Turkey. Petkim Petrokimya Holding A.S. operates as a subsidiary of Socar Turkey Petrokimya AS. PETKIM operates under Chemicals classification in Turkey and is traded on Istanbul Stock Exchange. It employs 2373 people.
Petkim Petrokimya'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 Petkim Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Petkim Petrokimya's price varies over time.
3 ways to utilize Petkim Petrokimya's volatility to invest better
Higher Petkim Petrokimya's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Petkim Petrokimya Holding 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. Petkim Petrokimya Holding 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 Petkim Petrokimya Holding investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Petkim Petrokimya'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 Petkim Petrokimya's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Petkim Petrokimya Investment Opportunity
Petkim Petrokimya Holding has a volatility of 2.09 and is 2.43 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Petkim Petrokimya. You can use Petkim Petrokimya Holding to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Petkim Petrokimya to be traded at 21.4 in 90 days.Good diversification
The correlation between Petkim Petrokimya Holding and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Petkim Petrokimya Holding and DJI in the same portfolio, assuming nothing else is changed.
Petkim Petrokimya Additional Risk Indicators
The analysis of Petkim Petrokimya'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 Petkim Petrokimya's investment and either accepting that risk or mitigating it. Along with some common measures of Petkim Petrokimya 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 | (0.03) | |||
| Market Risk Adjusted Performance | 1.08 | |||
| Mean Deviation | 1.47 | |||
| Coefficient Of Variation | (2,460) | |||
| Standard Deviation | 2.05 | |||
| Variance | 4.21 | |||
| Information Ratio | (0.05) |
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.
Petkim Petrokimya 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 Petkim Petrokimya 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. Petkim Petrokimya'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, Petkim Petrokimya'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 Petkim Petrokimya Holding.
Complementary Tools for Petkim Stock analysis
When running Petkim Petrokimya's price analysis, check to measure Petkim Petrokimya'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 Petkim Petrokimya is operating at the current time. Most of Petkim Petrokimya's value examination focuses on studying past and present price action to predict the probability of Petkim Petrokimya's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Petkim Petrokimya's price. Additionally, you may evaluate how the addition of Petkim Petrokimya to your portfolios can decrease your overall portfolio volatility.
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