088340 (Korea) Volatility

088340 Stock   13,670  240.00  1.73%   
088340 retains Efficiency (Sharpe Ratio) of -0.0496, which signifies that the company had a -0.0496 % return per unit of price deviation over the last 3 months. 088340 exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm 088340's Variance of 11.36, market risk adjusted performance of 0.3913, and Information Ratio of (0.16) to double-check the risk estimate we provide.
  
088340 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 088340 daily returns, and it is calculated using variance and standard deviation. We also use 088340's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 088340 volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 088340 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 088340 at lower prices to lower their average cost per share. Similarly, when the prices of 088340's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to 088340's market risk premium analysis include:

Moving together with 088340 Stock

  0.78373220 LG Energy SolutionPairCorr
  0.74051915 LG ChemPairCorr
  0.8051910 LG ChemicalsPairCorr

Moving against 088340 Stock

  0.71101530 Haitai ConfectioneryPairCorr
  0.69100660 Seoam Machinery IndustryPairCorr
  0.62357550 Sukgyung ATPairCorr
  0.62094360 ChipsMediaPairCorr
  0.59120240 Daejung Chemicals MetalsPairCorr
  0.54005935 Samsung ElectronicsPairCorr
  0.54014915 Sungmoon ElectronicsPairCorr
  0.53041510 SM EntertainmentPairCorr
  0.52005930 Samsung ElectronicsPairCorr
  0.52014910 SungMoon ElectronicsPairCorr

088340 Market Sensitivity And Downside Risk

088340's beta coefficient measures the volatility of 088340 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 088340 stock's returns against your selected market. In other words, 088340's beta of -1.25 provides an investor with an approximation of how much risk 088340 stock can potentially add to one of your existing portfolios. 088340 exhibits very low volatility with skewness of 0.93 and kurtosis of 3.33. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 088340'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 088340'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.
Check current 90 days 088340 correlation with market (Dow Jones Industrial)
α-0.39   β-1.25
3 Months Beta |Analyze 088340 Demand Trend
Check current 90 days 088340 correlation with market (Dow Jones Industrial)

088340 Volatility and Downside Risk

088340 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.

088340 Stock Volatility Analysis

Volatility refers to the frequency at which 088340 stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 088340's price changes. Investors will then calculate the volatility of 088340'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 088340's volatility:

Historical Volatility

This type of stock volatility measures 088340's fluctuations based on previous trends. It's commonly used to predict 088340'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 088340'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 088340'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. 088340 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.

088340 Projected Return Density Against Market

Assuming the 90 days trading horizon 088340 has a beta of -1.2524 . This suggests as returns on its benchmark rise, returns on holding 088340 are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, 088340 is expected to outperform its benchmark.
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 088340 or 088340 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 088340'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 088340 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.
088340 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  
088340's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how 088340 stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a 088340 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

088340 Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of 088340 is -2016.81. The daily returns are distributed with a variance of 9.94 and standard deviation of 3.15. The mean deviation of 088340 is currently at 2.21. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α
Alpha over Dow Jones
-0.39
β
Beta against Dow Jones-1.25
σ
Overall volatility
3.15
Ir
Information ratio -0.16

088340 Stock Return Volatility

088340 historical daily return volatility represents how much of 088340 stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.1525% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7399% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

005930005935
005385005387
000660005930
051910051915
000660005935
005385005935
  

High negative correlations

051915005935
051915000660
051915005930
051910005935
051910000660
051910005930

Risk-Adjusted Indicators

There is a big difference between 088340 Stock performing well and 088340 Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze 088340's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
005935  2.15  0.86  0.26 (4.01) 2.07 
 5.17 
 15.35 
005930  2.37  0.99  0.32 (13.69) 2.10 
 6.44 
 17.17 
373220  2.30 (0.25) 0.00  28.33  0.00 
 5.32 
 14.89 
000660  2.91  0.76  0.17 (1.76) 3.41 
 6.84 
 17.39 
207940  0.00  0.00  0.00  0.00  0.00 
 0.00 
 0.00 
051915  2.13 (0.33) 0.00  2.57  0.00 
 4.94 
 16.26 
051910  2.47 (0.27) 0.00  1.35  0.00 
 4.34 
 18.84 
006400  2.83  0.32  0.08  1.01  2.89 
 7.91 
 27.39 
005387  2.42  0.54  0.16 (1.96) 2.29 
 6.40 
 15.69 
005385  2.29  0.54  0.18 (3.26) 2.06 
 6.41 
 13.76 

088340 Investment Opportunity

088340 has a volatility of 3.15 and is 4.26 times more volatile than Dow Jones Industrial. 28 percent of all equities and portfolios are less risky than 088340. You can use 088340 to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of 088340 to be traded at 13259.9 in 90 days.

Pay attention - limited upside

The correlation between 088340 and DJI is -0.79 (i.e., Pay attention - limited upside) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 088340 and DJI in the same portfolio, assuming nothing else is changed.

088340 Additional Risk Indicators

The analysis of 088340'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 088340's investment and either accepting that risk or mitigating it. Along with some common measures of 088340 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.
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.

088340 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 088340 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. 088340'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, 088340'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 088340.

Complementary Tools for 088340 Stock analysis

When running 088340's price analysis, check to measure 088340'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 088340 is operating at the current time. Most of 088340's value examination focuses on studying past and present price action to predict the probability of 088340's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 088340's price. Additionally, you may evaluate how the addition of 088340 to your portfolios can decrease your overall portfolio volatility.
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