Shengfeng Development Limited Stock Volatility
| SFWL Stock | 1.18 0.05 4.07% |
Shengfeng Development owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0314, which indicates the firm had a -0.0314% return per unit of risk over the last 3 months. Shengfeng Development Limited exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Shengfeng Development's Coefficient Of Variation of (3,181), variance of 9.31, and Risk Adjusted Performance of (0.02) to confirm the risk estimate we provide. Key indicators related to Shengfeng Development's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Shengfeng Development 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 Shengfeng daily returns, and it is calculated using variance and standard deviation. We also use Shengfeng's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Shengfeng Development volatility.
Shengfeng |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Shengfeng Development at lower prices. For example, an investor can purchase Shengfeng 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 Shengfeng Stock
Shengfeng Development Market Sensitivity And Downside Risk
Shengfeng Development's beta coefficient measures the volatility of Shengfeng 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 Shengfeng stock's returns against your selected market. In other words, Shengfeng Development's beta of 0.87 provides an investor with an approximation of how much risk Shengfeng Development stock can potentially add to one of your existing portfolios. Shengfeng Development Limited exhibits very low volatility with skewness of 0.6 and kurtosis of 2.47. Shengfeng Development Limited is a potential penny stock. Although Shengfeng Development may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Shengfeng Development Limited. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Shengfeng instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Shengfeng Development Demand TrendCheck current 90 days Shengfeng Development correlation with market (Dow Jones Industrial)Shengfeng Beta |
Shengfeng 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 | 3.05 |
It is essential to understand the difference between upside risk (as represented by Shengfeng Development's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Shengfeng Development's daily returns or price. Since the actual investment returns on holding a position in shengfeng 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 Shengfeng Development.
Shengfeng Development Stock Volatility Analysis
Volatility refers to the frequency at which Shengfeng Development stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Shengfeng Development's price changes. Investors will then calculate the volatility of Shengfeng Development'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 Shengfeng Development's volatility:
Historical Volatility
This type of stock volatility measures Shengfeng Development's fluctuations based on previous trends. It's commonly used to predict Shengfeng Development'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 Shengfeng Development'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 Shengfeng Development'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. Shengfeng Development 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.
Shengfeng Development Projected Return Density Against Market
Given the investment horizon of 90 days Shengfeng Development has a beta of 0.866 . This usually implies Shengfeng Development Limited market returns are very sensitive to returns on the market. As the market goes up or down, Shengfeng Development 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 Shengfeng Development or Air Freight & Logistics 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 Shengfeng Development'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 Shengfeng 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.
Shengfeng Development Limited 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 Shengfeng Development 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.Shengfeng Development Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Shengfeng Development is -3181.08. The daily returns are distributed with a variance of 9.31 and standard deviation of 3.05. The mean deviation of Shengfeng Development Limited is currently at 2.19. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.21 | |
β | Beta against Dow Jones | 0.87 | |
σ | Overall volatility | 3.05 | |
Ir | Information ratio | -0.07 |
Shengfeng Development Stock Return Volatility
Shengfeng Development historical daily return volatility represents how much of Shengfeng Development stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.0519% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Shengfeng Development Volatility
Volatility is a rate at which the price of Shengfeng Development 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 Shengfeng Development may increase or decrease. In other words, similar to Shengfeng's beta indicator, it measures the risk of Shengfeng Development and helps estimate the fluctuations that may happen in a short period of time. So if prices of Shengfeng Development 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 Shengfeng Development's volatility to invest better
Higher Shengfeng Development's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Shengfeng Development 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. Shengfeng Development 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 Shengfeng Development investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Shengfeng Development'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 Shengfeng Development's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Shengfeng Development Investment Opportunity
Shengfeng Development Limited has a volatility of 3.05 and is 3.91 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Shengfeng Development Limited is lower than 27 percent of all global equities and portfolios over the last 90 days. You can use Shengfeng Development Limited to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Shengfeng Development to be traded at 1.121 in 90 days.Modest diversification
The correlation between Shengfeng Development Limited 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 Shengfeng Development Limited and DJI in the same portfolio, assuming nothing else is changed.
Shengfeng Development Additional Risk Indicators
The analysis of Shengfeng Development'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 Shengfeng Development's investment and either accepting that risk or mitigating it. Along with some common measures of Shengfeng Development 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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 2.19 | |||
| Coefficient Of Variation | (3,181) | |||
| Standard Deviation | 3.05 | |||
| Variance | 9.31 | |||
| Information Ratio | (0.07) |
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.
Shengfeng Development 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 Shengfeng Development 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. Shengfeng Development'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, Shengfeng Development'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 Shengfeng Development Limited.
When determining whether Shengfeng Development is a strong investment it is important to analyze Shengfeng Development's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Shengfeng Development's future performance. For an informed investment choice regarding Shengfeng Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shengfeng Development Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Air Freight & Logistics space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shengfeng Development. If investors know Shengfeng will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shengfeng Development listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Shengfeng Development is measured differently than its book value, which is the value of Shengfeng that is recorded on the company's balance sheet. Investors also form their own opinion of Shengfeng Development's value that differs from its market value or its book value, called intrinsic value, which is Shengfeng Development's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shengfeng Development's market value can be influenced by many factors that don't directly affect Shengfeng Development's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shengfeng Development's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shengfeng Development is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shengfeng Development's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.