REDSUN PROPERTIES (Germany) Volatility
| 0RJ Stock | EUR 0 0.0005 25.00% |
REDSUN PROPERTIES is out of control given 3 months investment horizon. REDSUN PROPERTIES maintains Sharpe Ratio (i.e., Efficiency) of 0.16, which implies the firm had a 0.16% return per unit of volatility over the last 3 months. We were able to interpolate twenty-seven different technical indicators, which can help you to evaluate if expected returns of 7.61% are justified by taking the suggested risk. Use REDSUN PROPERTIES semi deviation of 15.66, and Risk Adjusted Performance of 0.1189 to evaluate company specific risk that cannot be diversified away. Key indicators related to REDSUN PROPERTIES's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
REDSUN PROPERTIES 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 REDSUN daily returns, and it is calculated using variance and standard deviation. We also use REDSUN's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of REDSUN PROPERTIES volatility.
REDSUN |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as REDSUN PROPERTIES 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 REDSUN PROPERTIES at lower prices to lower their average cost per share. Similarly, when the prices of REDSUN PROPERTIES's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with REDSUN Stock
| 0.7 | CHZ | China Resources Land | PairCorr |
| 0.79 | 6FLA | SEAZEN GROUP LTD | PairCorr |
| 0.75 | RDH | RADIANCE HLDGS GRPHD | PairCorr |
| 0.84 | 6CI | CIFI Holdings | PairCorr |
Moving against REDSUN Stock
REDSUN PROPERTIES Market Sensitivity And Downside Risk
REDSUN PROPERTIES's beta coefficient measures the volatility of REDSUN 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 REDSUN stock's returns against your selected market. In other words, REDSUN PROPERTIES's beta of 1.43 provides an investor with an approximation of how much risk REDSUN PROPERTIES stock can potentially add to one of your existing portfolios. REDSUN PROPERTIES GROUP is showing large volatility of returns over the selected time horizon. REDSUN PROPERTIES GROUP is a penny stock. Even though REDSUN PROPERTIES may be a good instrument to invest, many penny stocks are speculative instruments that are subject to artificial stock promotions. Please make sure you fully understand upside and downside scenarios of investing in REDSUN PROPERTIES GROUP or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings,sudden promotions and many other similar artificial hype indicators. We also encourage traders to check work history of company executives before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on REDSUN 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 REDSUN PROPERTIES Demand TrendCheck current 90 days REDSUN PROPERTIES correlation with market (Dow Jones Industrial)REDSUN Beta |
REDSUN 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 | 48.81 |
It is essential to understand the difference between upside risk (as represented by REDSUN PROPERTIES's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of REDSUN PROPERTIES's daily returns or price. Since the actual investment returns on holding a position in redsun 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 REDSUN PROPERTIES.
REDSUN PROPERTIES Stock Volatility Analysis
Volatility refers to the frequency at which REDSUN PROPERTIES stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with REDSUN PROPERTIES's price changes. Investors will then calculate the volatility of REDSUN PROPERTIES'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 REDSUN PROPERTIES's volatility:
Historical Volatility
This type of stock volatility measures REDSUN PROPERTIES's fluctuations based on previous trends. It's commonly used to predict REDSUN PROPERTIES'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 REDSUN PROPERTIES'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 REDSUN PROPERTIES'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. REDSUN PROPERTIES 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.
REDSUN PROPERTIES Projected Return Density Against Market
Assuming the 90 days horizon the stock has the beta coefficient of 1.4293 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, REDSUN PROPERTIES will likely underperform.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 REDSUN PROPERTIES or Real Estate 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 REDSUN PROPERTIES'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 REDSUN 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.
REDSUN PROPERTIES GROUP has an alpha of 6.704, implying that it can generate a 6.7 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a REDSUN PROPERTIES 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.REDSUN PROPERTIES Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of REDSUN PROPERTIES is 641.02. The daily returns are distributed with a variance of 2382.58 and standard deviation of 48.81. The mean deviation of REDSUN PROPERTIES GROUP is currently at 25.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 6.70 | |
β | Beta against Dow Jones | 1.43 | |
σ | Overall volatility | 48.81 | |
Ir | Information ratio | 0.14 |
REDSUN PROPERTIES Stock Return Volatility
REDSUN PROPERTIES historical daily return volatility represents how much of REDSUN PROPERTIES stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 48.8117% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About REDSUN PROPERTIES Volatility
Volatility is a rate at which the price of REDSUN PROPERTIES 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 REDSUN PROPERTIES may increase or decrease. In other words, similar to REDSUN's beta indicator, it measures the risk of REDSUN PROPERTIES and helps estimate the fluctuations that may happen in a short period of time. So if prices of REDSUN PROPERTIES 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.Redsun Properties Group Limited, together with its subsidiaries, engages in the property development business in the Peoples Republic of China. Redsun Properties Group Limited is a subsidiary of Redsun Properties Group Limited. REDSUN PROPERTIES is traded on Frankfurt Stock Exchange in Germany.
REDSUN PROPERTIES'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 REDSUN Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much REDSUN PROPERTIES's price varies over time.
3 ways to utilize REDSUN PROPERTIES's volatility to invest better
Higher REDSUN PROPERTIES's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of REDSUN PROPERTIES 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. REDSUN PROPERTIES 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 REDSUN PROPERTIES investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in REDSUN PROPERTIES'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 REDSUN PROPERTIES's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
REDSUN PROPERTIES Investment Opportunity
REDSUN PROPERTIES GROUP has a volatility of 48.81 and is 65.08 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of REDSUN PROPERTIES GROUP is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use REDSUN PROPERTIES GROUP to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of REDSUN PROPERTIES to be traded at €0.0031 in 90 days.Significant diversification
The correlation between REDSUN PROPERTIES GROUP and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding REDSUN PROPERTIES GROUP and DJI in the same portfolio, assuming nothing else is changed.
REDSUN PROPERTIES Additional Risk Indicators
The analysis of REDSUN PROPERTIES'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 REDSUN PROPERTIES's investment and either accepting that risk or mitigating it. Along with some common measures of REDSUN PROPERTIES 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 | 0.1189 | |||
| Market Risk Adjusted Performance | 4.82 | |||
| Mean Deviation | 25.05 | |||
| Semi Deviation | 15.66 | |||
| Downside Deviation | 23.94 | |||
| Coefficient Of Variation | 702.52 | |||
| Standard Deviation | 48.33 |
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.
REDSUN PROPERTIES 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 REDSUN PROPERTIES 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. REDSUN PROPERTIES'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, REDSUN PROPERTIES'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 REDSUN PROPERTIES GROUP.
Complementary Tools for REDSUN Stock analysis
When running REDSUN PROPERTIES's price analysis, check to measure REDSUN PROPERTIES'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 REDSUN PROPERTIES is operating at the current time. Most of REDSUN PROPERTIES's value examination focuses on studying past and present price action to predict the probability of REDSUN PROPERTIES's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move REDSUN PROPERTIES's price. Additionally, you may evaluate how the addition of REDSUN PROPERTIES to your portfolios can decrease your overall portfolio volatility.
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