Safety Insurance (Germany) Volatility
| SFN Stock | EUR 79.50 0.40 0.51% |
At this point, Safety Insurance is very steady. Safety Insurance owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0689, which indicates the firm had a 0.0689% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Safety Insurance Group, which you can use to evaluate the volatility of the company. Please validate Safety Insurance's Semi Deviation of 0.997, coefficient of variation of 3237.96, and Risk Adjusted Performance of 0.0283 to confirm if the risk estimate we provide is consistent with the expected return of 0.0977%. Key indicators related to Safety Insurance's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Safety Insurance 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 Safety daily returns, and it is calculated using variance and standard deviation. We also use Safety's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Safety Insurance volatility.
Safety |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Safety Insurance can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Safety Insurance at lower prices to lower their average cost per share. Similarly, when the prices of Safety Insurance's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Safety Stock
| 0.89 | PGV | Progressive | PairCorr |
| 0.85 | ALS | Allstate | PairCorr |
| 0.84 | CCJ | Cincinnati Financial | PairCorr |
| 0.85 | MKV | Markel | PairCorr |
| 0.76 | FFX | Fairfax Financial | PairCorr |
| 0.78 | QBE | QBE Insurance Group | PairCorr |
| 0.78 | NRM | Insurance Australia | PairCorr |
Moving against Safety Stock
| 0.66 | FLN | Admiral Group plc | PairCorr |
| 0.43 | LLD2 | Lloyds Banking Group | PairCorr |
| 0.43 | TKDA | Takeda Pharmaceutical | PairCorr |
Safety Insurance Market Sensitivity And Downside Risk
Safety Insurance's beta coefficient measures the volatility of Safety 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 Safety stock's returns against your selected market. In other words, Safety Insurance's beta of 0.86 provides an investor with an approximation of how much risk Safety Insurance stock can potentially add to one of your existing portfolios. Safety Insurance Group has relatively low volatility with skewness of 1.09 and kurtosis of 1.92. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Safety Insurance'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 Safety Insurance'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 Safety Insurance Demand TrendCheck current 90 days Safety Insurance correlation with market (Dow Jones Industrial)Safety Beta |
Safety 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 | 1.42 |
It is essential to understand the difference between upside risk (as represented by Safety Insurance's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Safety Insurance's daily returns or price. Since the actual investment returns on holding a position in safety 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 Safety Insurance.
Safety Insurance Stock Volatility Analysis
Volatility refers to the frequency at which Safety Insurance stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Safety Insurance's price changes. Investors will then calculate the volatility of Safety Insurance'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 Safety Insurance's volatility:
Historical Volatility
This type of stock volatility measures Safety Insurance's fluctuations based on previous trends. It's commonly used to predict Safety Insurance'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 Safety Insurance'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 Safety Insurance'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. Safety Insurance 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.
Safety Insurance Projected Return Density Against Market
Assuming the 90 days horizon Safety Insurance has a beta of 0.8595 . This usually implies Safety Insurance Group market returns are reactive to returns on the market. As the market goes up or down, Safety Insurance is expected to follow.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 Safety Insurance or Financial Services 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 Safety Insurance'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 Safety 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.
Safety Insurance Group 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 Safety Insurance 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.Safety Insurance Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Safety Insurance is 1450.51. The daily returns are distributed with a variance of 2.01 and standard deviation of 1.42. The mean deviation of Safety Insurance Group is currently at 1.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.06 | |
β | Beta against Dow Jones | 0.86 | |
σ | Overall volatility | 1.42 | |
Ir | Information ratio | -0.06 |
Safety Insurance Stock Return Volatility
Safety Insurance historical daily return volatility represents how much of Safety Insurance stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.4178% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7522% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Safety Insurance Volatility
Volatility is a rate at which the price of Safety Insurance 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 Safety Insurance may increase or decrease. In other words, similar to Safety's beta indicator, it measures the risk of Safety Insurance and helps estimate the fluctuations that may happen in a short period of time. So if prices of Safety Insurance 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.Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts. SAFETY INSURANCE operates under Insurance - Property Casualty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 627 people.
Safety Insurance'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 Safety Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Safety Insurance's price varies over time.
3 ways to utilize Safety Insurance's volatility to invest better
Higher Safety Insurance's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Safety Insurance 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. Safety Insurance 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 Safety Insurance investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Safety Insurance'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 Safety Insurance's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Safety Insurance Investment Opportunity
Safety Insurance Group has a volatility of 1.42 and is 1.89 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Safety Insurance Group is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Safety Insurance Group to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Safety Insurance to be traded at €87.45 in 90 days.Very weak diversification
The correlation between Safety Insurance Group and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group and DJI in the same portfolio, assuming nothing else is changed.
Safety Insurance Additional Risk Indicators
The analysis of Safety Insurance'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 Safety Insurance's investment and either accepting that risk or mitigating it. Along with some common measures of Safety Insurance 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 | 0.0283 | |||
| Market Risk Adjusted Performance | 0.05 | |||
| Mean Deviation | 1.0 | |||
| Semi Deviation | 0.997 | |||
| Downside Deviation | 1.33 | |||
| Coefficient Of Variation | 3237.96 | |||
| Standard Deviation | 1.44 |
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.
Safety Insurance 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 Safety Insurance 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. Safety Insurance'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, Safety Insurance'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 Safety Insurance Group.
Complementary Tools for Safety Stock analysis
When running Safety Insurance's price analysis, check to measure Safety Insurance'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 Safety Insurance is operating at the current time. Most of Safety Insurance's value examination focuses on studying past and present price action to predict the probability of Safety Insurance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Safety Insurance's price. Additionally, you may evaluate how the addition of Safety Insurance to your portfolios can decrease your overall portfolio volatility.
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |