Prosafe SE (Norway) Volatility
| PRS Stock | NOK 6.73 0.17 2.46% |
Prosafe SE maintains Sharpe Ratio (i.e., Efficiency) of -0.4, which implies the firm had a -0.4% return per unit of risk over the last 3 months. Prosafe SE exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Prosafe SE's Coefficient Of Variation of (250.37), variance of 31.27, and Risk Adjusted Performance of (0.30) to confirm the risk estimate we provide. Key indicators related to Prosafe SE's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Prosafe SE 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 Prosafe daily returns, and it is calculated using variance and standard deviation. We also use Prosafe's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Prosafe SE volatility.
Prosafe |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Prosafe SE at lower prices. For example, an investor can purchase Prosafe 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 Prosafe Stock
Moving against Prosafe Stock
| 0.81 | AKSO | Aker Solutions ASA | PairCorr |
| 0.78 | GIGA | Gigante Salmon AS | PairCorr |
| 0.57 | AKER | Aker ASA | PairCorr |
| 0.57 | SDNS | Shelf Drilling | PairCorr |
Prosafe SE Market Sensitivity And Downside Risk
Prosafe SE's beta coefficient measures the volatility of Prosafe 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 Prosafe stock's returns against your selected market. In other words, Prosafe SE's beta of -0.76 provides an investor with an approximation of how much risk Prosafe SE stock can potentially add to one of your existing portfolios. Prosafe SE exhibits very low volatility with skewness of -1.25 and kurtosis of 5.76. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Prosafe SE'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 Prosafe SE'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 Prosafe SE Demand TrendCheck current 90 days Prosafe SE correlation with market (Dow Jones Industrial)Prosafe Beta |
Prosafe 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 | 5.67 |
It is essential to understand the difference between upside risk (as represented by Prosafe SE's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Prosafe SE's daily returns or price. Since the actual investment returns on holding a position in prosafe 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 Prosafe SE.
Prosafe SE Stock Volatility Analysis
Volatility refers to the frequency at which Prosafe SE stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Prosafe SE's price changes. Investors will then calculate the volatility of Prosafe SE'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 Prosafe SE's volatility:
Historical Volatility
This type of stock volatility measures Prosafe SE's fluctuations based on previous trends. It's commonly used to predict Prosafe SE'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 Prosafe SE'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 Prosafe SE'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. Prosafe SE 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.
Prosafe SE Projected Return Density Against Market
Assuming the 90 days trading horizon Prosafe SE has a beta of -0.7567 indicating as returns on the benchmark increase, returns on holding Prosafe SE are expected to decrease at a much lower rate. During a bear market, however, Prosafe SE 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 Prosafe SE or Energy 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 Prosafe SE'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 Prosafe 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.
Prosafe SE 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 Prosafe SE 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.Prosafe SE Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Prosafe SE is -250.74. The daily returns are distributed with a variance of 32.15 and standard deviation of 5.67. The mean deviation of Prosafe SE is currently at 3.53. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -2.16 | |
β | Beta against Dow Jones | -0.76 | |
σ | Overall volatility | 5.67 | |
Ir | Information ratio | -0.42 |
Prosafe SE Stock Return Volatility
Prosafe SE historical daily return volatility represents how much of Prosafe SE stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 5.6698% 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 Prosafe SE Volatility
Volatility is a rate at which the price of Prosafe SE 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 Prosafe SE may increase or decrease. In other words, similar to Prosafe's beta indicator, it measures the risk of Prosafe SE and helps estimate the fluctuations that may happen in a short period of time. So if prices of Prosafe SE 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.Prosafe SE, together with its subsidiaries, owns and operates semi-submersible accommodation vessels in Europe, South America, and Asia. The company was founded in 1972 and is headquartered in Stavanger, Norway. PROSAFE SE operates under Oil And Gas Equipment And Services classification in Norway and is traded on Oslo Stock Exchange. It employs 103 people.
Prosafe SE'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 Prosafe Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Prosafe SE's price varies over time.
3 ways to utilize Prosafe SE's volatility to invest better
Higher Prosafe SE's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Prosafe SE 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. Prosafe SE 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 Prosafe SE investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Prosafe SE'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 Prosafe SE's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Prosafe SE Investment Opportunity
Prosafe SE has a volatility of 5.67 and is 7.56 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Prosafe SE is higher than 50 percent of all global equities and portfolios over the last 90 days. You can use Prosafe SE to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Prosafe SE to be traded at 6.46 in 90 days.Good diversification
The correlation between Prosafe SE and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Prosafe SE and DJI in the same portfolio, assuming nothing else is changed.
Prosafe SE Additional Risk Indicators
The analysis of Prosafe SE'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 Prosafe SE's investment and either accepting that risk or mitigating it. Along with some common measures of Prosafe SE 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 | (0.30) | |||
| Market Risk Adjusted Performance | 2.97 | |||
| Mean Deviation | 3.47 | |||
| Coefficient Of Variation | (250.37) | |||
| Standard Deviation | 5.59 | |||
| Variance | 31.27 | |||
| Information Ratio | (0.42) |
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.
Prosafe SE 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.
| Citigroup vs. Prosafe SE | ||
| GM vs. Prosafe SE | ||
| Ford vs. Prosafe SE | ||
| Microsoft vs. Prosafe SE | ||
| Alphabet vs. Prosafe SE | ||
| Dupont De vs. Prosafe SE | ||
| Visa vs. Prosafe SE | ||
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 Prosafe SE 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. Prosafe SE'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, Prosafe SE'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 Prosafe SE.
Other Information on Investing in Prosafe Stock
Prosafe SE financial ratios help investors to determine whether Prosafe 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 Prosafe with respect to the benefits of owning Prosafe SE security.