Techtronic Industries Ltd Stock Volatility
| TTNDY Stock | USD 71.26 3.46 5.10% |
At this stage we consider Techtronic Pink Sheet to be very steady. Techtronic Industries owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0625, which indicates the firm had a 0.0625% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Techtronic Industries Ltd, which you can use to evaluate the volatility of the company. Please validate Techtronic Industries' Risk Adjusted Performance of 0.048, semi deviation of 1.86, and Coefficient Of Variation of 1837.46 to confirm if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to Techtronic Industries' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Techtronic Industries Pink Sheet 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 Techtronic daily returns, and it is calculated using variance and standard deviation. We also use Techtronic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Techtronic Industries volatility.
Techtronic |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Techtronic Industries 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 Techtronic Industries at lower prices. For example, an investor can purchase Techtronic 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 Techtronic Industries' 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 Techtronic Pink Sheet
| 0.64 | TTNDF | Techtronic Industries | PairCorr |
| 0.66 | SWK | Stanley Black Decker | PairCorr |
| 0.65 | SKFRY | AB SKF | PairCorr |
Moving against Techtronic Pink Sheet
| 0.62 | NFPDF | Nissin Foods Holdings | PairCorr |
| 0.46 | FUWAF | Furukawa Electric | PairCorr |
| 0.4 | FNMA | Federal National Mortgage | PairCorr |
Techtronic Industries Market Sensitivity And Downside Risk
Techtronic Industries' beta coefficient measures the volatility of Techtronic pink sheet 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 Techtronic pink sheet's returns against your selected market. In other words, Techtronic Industries's beta of 0.21 provides an investor with an approximation of how much risk Techtronic Industries pink sheet can potentially add to one of your existing portfolios. Techtronic Industries Ltd has relatively low volatility with skewness of 0.03 and kurtosis of 1.45. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Techtronic Industries' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Techtronic Industries' pink sheet 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 Techtronic Industries Demand TrendCheck current 90 days Techtronic Industries correlation with market (Dow Jones Industrial)Techtronic Beta |
Techtronic 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 | 2.08 |
It is essential to understand the difference between upside risk (as represented by Techtronic Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Techtronic Industries' daily returns or price. Since the actual investment returns on holding a position in techtronic pink sheet 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 Techtronic Industries.
Techtronic Industries Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Techtronic Industries pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Techtronic Industries' price changes. Investors will then calculate the volatility of Techtronic Industries' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Techtronic Industries' volatility:
Historical Volatility
This type of pink sheet volatility measures Techtronic Industries' fluctuations based on previous trends. It's commonly used to predict Techtronic Industries' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Techtronic Industries' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Techtronic Industries' 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. Techtronic Industries 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.
Techtronic Industries Projected Return Density Against Market
Assuming the 90 days horizon Techtronic Industries has a beta of 0.2116 . This usually implies as returns on the market go up, Techtronic Industries average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Techtronic Industries Ltd 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 Techtronic Industries or Industrials 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 Techtronic Industries' price will be affected by overall pink sheet 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 Techtronic pink sheet'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.
Techtronic Industries Ltd has an alpha of 0.0776, implying that it can generate a 0.0776 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Techtronic Industries Price Volatility?
Several factors can influence a pink sheet'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.Techtronic Industries Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Techtronic Industries is 1600.77. The daily returns are distributed with a variance of 4.32 and standard deviation of 2.08. The mean deviation of Techtronic Industries Ltd is currently at 1.48. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 0.21 | |
σ | Overall volatility | 2.08 | |
Ir | Information ratio | -0.0065 |
Techtronic Industries Pink Sheet Return Volatility
Techtronic Industries historical daily return volatility represents how much of Techtronic Industries pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.0776% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7717% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Techtronic Industries Volatility
Volatility is a rate at which the price of Techtronic Industries 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 Techtronic Industries may increase or decrease. In other words, similar to Techtronic's beta indicator, it measures the risk of Techtronic Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Techtronic Industries 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.Techtronic Industries Company Limited engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floorcare and cleaning products worldwide. The company was founded in 1985 and is based in Kwai Chung, Hong Kong. Techtronic Industries operates under Tools Accessories classification in the United States and is traded on OTC Exchange. It employs 47568 people.
Techtronic Industries' 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 Techtronic Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Techtronic Industries' price varies over time.
3 ways to utilize Techtronic Industries' volatility to invest better
Higher Techtronic Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Techtronic Industries 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. Techtronic Industries 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 Techtronic Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Techtronic Industries' 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 Techtronic Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Techtronic Industries Investment Opportunity
Techtronic Industries Ltd has a volatility of 2.08 and is 2.7 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Techtronic Industries. You can use Techtronic Industries Ltd to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Techtronic Industries to be traded at $89.08 in 90 days.Significant diversification
The correlation between Techtronic Industries Ltd and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Techtronic Industries Ltd and DJI in the same portfolio, assuming nothing else is changed.
Techtronic Industries Additional Risk Indicators
The analysis of Techtronic Industries' 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 Techtronic Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Techtronic Industries pink sheet'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 | 0.048 | |||
| Market Risk Adjusted Performance | 0.4922 | |||
| Mean Deviation | 1.48 | |||
| Semi Deviation | 1.86 | |||
| Downside Deviation | 1.98 | |||
| Coefficient Of Variation | 1837.46 | |||
| Standard Deviation | 2.06 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Techtronic Industries 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 Techtronic Industries 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. Techtronic Industries' 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, Techtronic Industries' 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 Techtronic Industries Ltd.
Additional Tools for Techtronic Pink Sheet Analysis
When running Techtronic Industries' price analysis, check to measure Techtronic Industries' 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 Techtronic Industries is operating at the current time. Most of Techtronic Industries' value examination focuses on studying past and present price action to predict the probability of Techtronic Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Techtronic Industries' price. Additionally, you may evaluate how the addition of Techtronic Industries to your portfolios can decrease your overall portfolio volatility.