Rosenbauer International (Austria) Volatility
| ROS Stock | EUR 35.00 0.70 2.04% |
Rosenbauer International maintains Sharpe Ratio (i.e., Efficiency) of -0.0575, which implies the firm had a -0.0575% return per unit of risk over the last 3 months. Rosenbauer International exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Rosenbauer International's Risk Adjusted Performance of (0.04), coefficient of variation of (1,561), and Variance of 2.0 to confirm the risk estimate we provide. Key indicators related to Rosenbauer International's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Rosenbauer International 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 Rosenbauer daily returns, and it is calculated using variance and standard deviation. We also use Rosenbauer's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Rosenbauer International volatility.
Rosenbauer |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Rosenbauer International at lower prices. For example, an investor can purchase Rosenbauer 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 against Rosenbauer Stock
| 0.85 | JD | JD Inc | PairCorr |
| 0.58 | OMV | OMV Aktiengesellschaft | PairCorr |
| 0.52 | ACS | ACS Actividades de | PairCorr |
| 0.49 | SAN | Banco Santander SA | PairCorr |
Rosenbauer International Market Sensitivity And Downside Risk
Rosenbauer International's beta coefficient measures the volatility of Rosenbauer 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 Rosenbauer stock's returns against your selected market. In other words, Rosenbauer International's beta of -0.26 provides an investor with an approximation of how much risk Rosenbauer International stock can potentially add to one of your existing portfolios. Rosenbauer International AG exhibits very low volatility with skewness of 0.14 and kurtosis of -0.93. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rosenbauer International'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 Rosenbauer International'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 Rosenbauer International Demand TrendCheck current 90 days Rosenbauer International correlation with market (Dow Jones Industrial)Rosenbauer Beta |
Rosenbauer 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 | 1.41 |
It is essential to understand the difference between upside risk (as represented by Rosenbauer International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Rosenbauer International's daily returns or price. Since the actual investment returns on holding a position in rosenbauer 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 Rosenbauer International.
Rosenbauer International Stock Volatility Analysis
Volatility refers to the frequency at which Rosenbauer International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Rosenbauer International's price changes. Investors will then calculate the volatility of Rosenbauer International'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 Rosenbauer International's volatility:
Historical Volatility
This type of stock volatility measures Rosenbauer International's fluctuations based on previous trends. It's commonly used to predict Rosenbauer International'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 Rosenbauer International'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 Rosenbauer International'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. Rosenbauer International 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.
Rosenbauer International Projected Return Density Against Market
Assuming the 90 days trading horizon Rosenbauer International AG has a beta of -0.2622 indicating as returns on the benchmark increase, returns on holding Rosenbauer International are expected to decrease at a much lower rate. During a bear market, however, Rosenbauer International AG 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 Rosenbauer International or Industrial 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 Rosenbauer International'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 Rosenbauer 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.
Rosenbauer International AG 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 Rosenbauer International 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.Rosenbauer International Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Rosenbauer International is -1738.84. The daily returns are distributed with a variance of 1.99 and standard deviation of 1.41. The mean deviation of Rosenbauer International AG is currently at 1.17. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | -0.07 | |
β | Beta against Dow Jones | -0.26 | |
σ | Overall volatility | 1.41 | |
Ir | Information ratio | -0.15 |
Rosenbauer International Stock Return Volatility
Rosenbauer International historical daily return volatility represents how much of Rosenbauer International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 1.4119% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Rosenbauer International Volatility
Volatility is a rate at which the price of Rosenbauer International 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 Rosenbauer International may increase or decrease. In other words, similar to Rosenbauer's beta indicator, it measures the risk of Rosenbauer International and helps estimate the fluctuations that may happen in a short period of time. So if prices of Rosenbauer International 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.3 ways to utilize Rosenbauer International's volatility to invest better
Higher Rosenbauer International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Rosenbauer International 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. Rosenbauer International 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 Rosenbauer International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Rosenbauer International'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 Rosenbauer International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Rosenbauer International Investment Opportunity
Rosenbauer International AG has a volatility of 1.41 and is 1.93 times more volatile than Dow Jones Industrial. 12 percent of all equities and portfolios are less risky than Rosenbauer International. You can use Rosenbauer International AG to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Rosenbauer International to be traded at €42.0 in 90 days.Good diversification
The correlation between Rosenbauer International AG and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Rosenbauer International AG and DJI in the same portfolio, assuming nothing else is changed.
Rosenbauer International Additional Risk Indicators
The analysis of Rosenbauer International'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 Rosenbauer International's investment and either accepting that risk or mitigating it. Along with some common measures of Rosenbauer International 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 | (0.04) | |||
| Market Risk Adjusted Performance | 0.3936 | |||
| Mean Deviation | 1.18 | |||
| Coefficient Of Variation | (1,561) | |||
| Standard Deviation | 1.41 | |||
| Variance | 2.0 | |||
| Information Ratio | (0.15) |
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.
Rosenbauer International 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 Rosenbauer International 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. Rosenbauer International'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, Rosenbauer International'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 Rosenbauer International AG.
Complementary Tools for Rosenbauer Stock analysis
When running Rosenbauer International's price analysis, check to measure Rosenbauer International'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 Rosenbauer International is operating at the current time. Most of Rosenbauer International's value examination focuses on studying past and present price action to predict the probability of Rosenbauer International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rosenbauer International's price. Additionally, you may evaluate how the addition of Rosenbauer International to your portfolios can decrease your overall portfolio volatility.
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