Redcare Pharmacy (Germany) Volatility
| RDC Stock | 150.30 9.70 6.06% |
Redcare Pharmacy appears to be very steady, given 3 months investment horizon. Redcare Pharmacy maintains Sharpe Ratio (i.e., Efficiency) of 0.16, which implies the firm had a 0.16% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Redcare Pharmacy, which you can use to evaluate the volatility of the company. Please evaluate Redcare Pharmacy's Risk Adjusted Performance of 0.1497, coefficient of variation of 508.99, and Semi Deviation of 1.8 to confirm if our risk estimates are consistent with your expectations.
Redcare |
Redcare Pharmacy 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 Redcare daily returns, and it is calculated using variance and standard deviation. We also use Redcare's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Redcare Pharmacy volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Redcare Pharmacy can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Redcare Pharmacy at lower prices. For example, an investor can purchase Redcare stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Redcare Pharmacy's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Redcare Stock
| 0.7 | APC | Apple Inc | PairCorr |
| 0.69 | APC | Apple Inc | PairCorr |
| 0.69 | APC | Apple Inc | PairCorr |
| 0.69 | APC | Apple Inc | PairCorr |
| 0.7 | APC | Apple Inc | PairCorr |
| 0.7 | APC | Apple Inc | PairCorr |
Moving against Redcare Stock
Redcare Pharmacy Market Sensitivity And Downside Risk
Redcare Pharmacy's beta coefficient measures the volatility of Redcare 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 Redcare stock's returns against your selected market. In other words, Redcare Pharmacy's beta of 0.74 provides an investor with an approximation of how much risk Redcare Pharmacy stock can potentially add to one of your existing portfolios. Redcare Pharmacy NV currently demonstrates below-average downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Redcare Pharmacy'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 Redcare Pharmacy'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 Redcare Pharmacy Demand TrendCheck current 90 days Redcare Pharmacy correlation with market (Dow Jones Industrial)Redcare Beta |
Redcare 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 | 2.64 |
It is essential to understand the difference between upside risk (as represented by Redcare Pharmacy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Redcare Pharmacy's daily returns or price. Since the actual investment returns on holding a position in redcare 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 Redcare Pharmacy.
Redcare Pharmacy Stock Volatility Analysis
Volatility refers to the frequency at which Redcare Pharmacy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Redcare Pharmacy's price changes. Investors will then calculate the volatility of Redcare Pharmacy'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 Redcare Pharmacy's volatility:
Historical Volatility
This type of stock volatility measures Redcare Pharmacy's fluctuations based on previous trends. It's commonly used to predict Redcare Pharmacy'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 Redcare Pharmacy'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 Redcare Pharmacy'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. Redcare Pharmacy 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.
Redcare Pharmacy Projected Return Density Against Market
Assuming the 90 days trading horizon Redcare Pharmacy has a beta of 0.741 indicating as returns on the market go up, Redcare Pharmacy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Redcare Pharmacy NV 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 Redcare Pharmacy or Redcare 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 Redcare Pharmacy'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 Redcare 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.
Redcare Pharmacy NV has an alpha of 0.4356, implying that it can generate a 0.44 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Redcare Pharmacy 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.Redcare Pharmacy Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Redcare Pharmacy is 641.41. The daily returns are distributed with a variance of 6.99 and standard deviation of 2.64. The mean deviation of Redcare Pharmacy NV is currently at 1.87. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.44 | |
β | Beta against Dow Jones | 0.74 | |
σ | Overall volatility | 2.64 | |
Ir | Information ratio | 0.16 |
Redcare Pharmacy Stock Return Volatility
Redcare Pharmacy historical daily return volatility represents how much of Redcare Pharmacy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.6444% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Redcare Pharmacy Investment Opportunity
Redcare Pharmacy NV has a volatility of 2.64 and is 3.62 times more volatile than Dow Jones Industrial. 23 percent of all equities and portfolios are less risky than Redcare Pharmacy. You can use Redcare Pharmacy NV to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Redcare Pharmacy to be traded at 142.79 in 90 days.Modest diversification
The correlation between Redcare Pharmacy NV and DJI is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Redcare Pharmacy NV and DJI in the same portfolio, assuming nothing else is changed.
Redcare Pharmacy Additional Risk Indicators
The analysis of Redcare Pharmacy'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 Redcare Pharmacy's investment and either accepting that risk or mitigating it. Along with some common measures of Redcare Pharmacy 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 | 0.1497 | |||
| Market Risk Adjusted Performance | 0.6879 | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 2.31 | |||
| Coefficient Of Variation | 508.99 | |||
| Standard Deviation | 2.61 |
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.
Redcare Pharmacy 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 Redcare Pharmacy 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. Redcare Pharmacy'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, Redcare Pharmacy'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 Redcare Pharmacy NV.
Additional Tools for Redcare Stock Analysis
When running Redcare Pharmacy's price analysis, check to measure Redcare Pharmacy'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 Redcare Pharmacy is operating at the current time. Most of Redcare Pharmacy's value examination focuses on studying past and present price action to predict the probability of Redcare Pharmacy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redcare Pharmacy's price. Additionally, you may evaluate how the addition of Redcare Pharmacy to your portfolios can decrease your overall portfolio volatility.