Eureka Design (Thailand) Volatility
| UREKA Stock | THB 0.62 0.01 1.64% |
Eureka Design appears to be extremely dangerous, given 3 months investment horizon. Eureka Design Public secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had a 0.15% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Eureka Design Public, which you can use to evaluate the volatility of the firm. Please utilize Eureka Design's Coefficient Of Variation of 658.31, downside deviation of 3.12, and Mean Deviation of 2.04 to check if our risk estimates are consistent with your expectations. Key indicators related to Eureka Design's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Eureka Design 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 Eureka daily returns, and it is calculated using variance and standard deviation. We also use Eureka's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Eureka Design volatility.
Eureka |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Eureka Design 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 Eureka Design at lower prices to lower their average cost per share. Similarly, when the prices of Eureka Design's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Eureka Stock
Eureka Design Market Sensitivity And Downside Risk
Eureka Design's beta coefficient measures the volatility of Eureka 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 Eureka stock's returns against your selected market. In other words, Eureka Design's beta of 0.37 provides an investor with an approximation of how much risk Eureka Design stock can potentially add to one of your existing portfolios. Eureka Design Public shows above-average downside volatility for the selected time horizon. Eureka Design Public is a potential penny stock. Although Eureka Design 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 Eureka Design Public. 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 Eureka 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 Eureka Design Public Demand TrendCheck current 90 days Eureka Design correlation with market (Dow Jones Industrial)Eureka Beta |
Eureka 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 | 2.84 |
It is essential to understand the difference between upside risk (as represented by Eureka Design's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eureka Design's daily returns or price. Since the actual investment returns on holding a position in eureka 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 Eureka Design.
Eureka Design Public Stock Volatility Analysis
Volatility refers to the frequency at which Eureka Design stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Eureka Design's price changes. Investors will then calculate the volatility of Eureka Design'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 Eureka Design's volatility:
Historical Volatility
This type of stock volatility measures Eureka Design's fluctuations based on previous trends. It's commonly used to predict Eureka Design'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 Eureka Design'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 Eureka Design'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. Eureka Design Public 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.
Eureka Design Projected Return Density Against Market
Assuming the 90 days trading horizon Eureka Design has a beta of 0.3722 . This usually implies as returns on the market go up, Eureka Design average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Eureka Design Public 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 Eureka Design or Eureka 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 Eureka Design'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 Eureka 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.
Eureka Design Public has an alpha of 0.3693, implying that it can generate a 0.37 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Eureka Design 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.Eureka Design Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Eureka Design is 688.04. The daily returns are distributed with a variance of 8.09 and standard deviation of 2.84. The mean deviation of Eureka Design Public is currently at 2.05. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.37 | |
β | Beta against Dow Jones | 0.37 | |
σ | Overall volatility | 2.84 | |
Ir | Information ratio | 0.10 |
Eureka Design Stock Return Volatility
Eureka Design historical daily return volatility represents how much of Eureka Design stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.8439% 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 Eureka Design Volatility
Volatility is a rate at which the price of Eureka Design 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 Eureka Design may increase or decrease. In other words, similar to Eureka's beta indicator, it measures the risk of Eureka Design and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eureka Design 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.Eureka Design Public Company Limited designs, manufactures, and sells machinery for the automotive and other industries in Thailand, India, and internationally. Eureka Design Public Company Limited was founded in 2002 and is based in Pathum Thani, Thailand. EUREKA DESIGN operates under Specialty Industrial Machinery classification in Thailand and is traded on Stock Exchange of Thailand.
Eureka Design'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 Eureka Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Eureka Design's price varies over time.
3 ways to utilize Eureka Design's volatility to invest better
Higher Eureka Design's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Eureka Design Public 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. Eureka Design Public 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 Eureka Design Public investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Eureka Design'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 Eureka Design's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Eureka Design Investment Opportunity
Eureka Design Public has a volatility of 2.84 and is 3.84 times more volatile than Dow Jones Industrial. 25 percent of all equities and portfolios are less risky than Eureka Design. You can use Eureka Design Public to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Eureka Design to be traded at 0.682 in 90 days.Average diversification
The correlation between Eureka Design Public and DJI is 0.1 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eureka Design Public and DJI in the same portfolio, assuming nothing else is changed.
Eureka Design Additional Risk Indicators
The analysis of Eureka Design'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 Eureka Design's investment and either accepting that risk or mitigating it. Along with some common measures of Eureka Design 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 | 0.1234 | |||
| Market Risk Adjusted Performance | 1.13 | |||
| Mean Deviation | 2.04 | |||
| Semi Deviation | 1.9 | |||
| Downside Deviation | 3.12 | |||
| Coefficient Of Variation | 658.31 | |||
| Standard Deviation | 2.81 |
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.
Eureka Design 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 Eureka Design 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. Eureka Design'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, Eureka Design'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 Eureka Design Public.
Complementary Tools for Eureka Stock analysis
When running Eureka Design's price analysis, check to measure Eureka Design'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 Eureka Design is operating at the current time. Most of Eureka Design's value examination focuses on studying past and present price action to predict the probability of Eureka Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eureka Design's price. Additionally, you may evaluate how the addition of Eureka Design to your portfolios can decrease your overall portfolio volatility.
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