Sydbank AS (Denmark) Volatility
| SYDB Stock | DKK 350.60 1.80 0.51% |
As of now, Sydbank Stock is very steady. Sydbank AS owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0296, which indicates the firm had a 0.0296% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Sydbank AS, which you can use to evaluate the volatility of the company. Please validate Sydbank AS's Semi Deviation of 1.32, coefficient of variation of 2114.9, and Risk Adjusted Performance of 0.0404 to confirm if the risk estimate we provide is consistent with the expected return of 0.039%. Key indicators related to Sydbank AS's volatility include:
690 Days Market Risk | Chance Of Distress | 690 Days Economic Sensitivity |
Sydbank AS 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 Sydbank daily returns, and it is calculated using variance and standard deviation. We also use Sydbank's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sydbank AS volatility.
Sydbank |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sydbank AS 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 Sydbank AS at lower prices. For example, an investor can purchase Sydbank 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 Sydbank AS'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 Sydbank Stock
Moving against Sydbank Stock
| 0.62 | STRINV | Strategic Investments | PairCorr |
| 0.56 | DKIDK | Danske Invest Danmark | PairCorr |
| 0.39 | DKIEU | Danske Invest Europa | PairCorr |
Sydbank AS Market Sensitivity And Downside Risk
Sydbank AS's beta coefficient measures the volatility of Sydbank 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 Sydbank stock's returns against your selected market. In other words, Sydbank AS's beta of -0.0067 provides an investor with an approximation of how much risk Sydbank AS stock can potentially add to one of your existing portfolios. Sydbank AS has relatively low volatility with skewness of 0.12 and kurtosis of 1.36. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sydbank AS'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 Sydbank AS'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 Sydbank AS Demand TrendCheck current 90 days Sydbank AS correlation with market (Dow Jones Industrial)Sydbank Beta |
Sydbank 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 | 1.32 |
It is essential to understand the difference between upside risk (as represented by Sydbank AS's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sydbank AS's daily returns or price. Since the actual investment returns on holding a position in sydbank 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 Sydbank AS.
Sydbank AS Stock Volatility Analysis
Volatility refers to the frequency at which Sydbank AS stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sydbank AS's price changes. Investors will then calculate the volatility of Sydbank AS'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 Sydbank AS's volatility:
Historical Volatility
This type of stock volatility measures Sydbank AS's fluctuations based on previous trends. It's commonly used to predict Sydbank AS'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 Sydbank AS'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 Sydbank AS'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. Sydbank AS 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.
Sydbank AS Projected Return Density Against Market
Assuming the 90 days trading horizon Sydbank AS has a beta of -0.0067 . This usually implies as returns on the benchmark increase, returns on holding Sydbank AS are expected to decrease at a much lower rate. During a bear market, however, Sydbank AS 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 Sydbank AS or Banks 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 Sydbank AS'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 Sydbank 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.
Sydbank AS has an alpha of 0.0526, implying that it can generate a 0.0526 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sydbank AS 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.Sydbank AS Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Sydbank AS is 3383.28. The daily returns are distributed with a variance of 1.74 and standard deviation of 1.32. The mean deviation of Sydbank AS is currently at 1.01. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | -0.0067 | |
σ | Overall volatility | 1.32 | |
Ir | Information ratio | -0.05 |
Sydbank AS Stock Return Volatility
Sydbank AS historical daily return volatility represents how much of Sydbank AS stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.3197% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sydbank AS Volatility
Volatility is a rate at which the price of Sydbank AS 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 Sydbank AS may increase or decrease. In other words, similar to Sydbank's beta indicator, it measures the risk of Sydbank AS and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sydbank AS 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.Sydbank AS, together with its subsidiaries, provides various banking products and services to corporate and retail customers in Denmark and internationally. Sydbank AS was founded in 1970 and is headquartered in Aabenraa, Denmark. Sydbank AS operates under BanksRegional classification in Denmark and is traded on Copenhagen Stock Exchange. It employs 2126 people.
Sydbank AS'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 Sydbank Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sydbank AS's price varies over time.
3 ways to utilize Sydbank AS's volatility to invest better
Higher Sydbank AS's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sydbank AS 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. Sydbank AS 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 Sydbank AS investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sydbank AS'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 Sydbank AS's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sydbank AS Investment Opportunity
Sydbank AS has a volatility of 1.32 and is 1.78 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than Sydbank AS. You can use Sydbank AS to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Sydbank AS to be traded at kr343.59 in 90 days.Sydbank AS Additional Risk Indicators
The analysis of Sydbank AS'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 Sydbank AS's investment and either accepting that risk or mitigating it. Along with some common measures of Sydbank AS 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 | 0.0404 | |||
| Market Risk Adjusted Performance | (7.72) | |||
| Mean Deviation | 1.0 | |||
| Semi Deviation | 1.32 | |||
| Downside Deviation | 1.39 | |||
| Coefficient Of Variation | 2114.9 | |||
| Standard Deviation | 1.31 |
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.
Sydbank AS 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.
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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 Sydbank AS 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. Sydbank AS'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, Sydbank AS'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 Sydbank AS.
Other Information on Investing in Sydbank Stock
Sydbank AS financial ratios help investors to determine whether Sydbank 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 Sydbank with respect to the benefits of owning Sydbank AS security.