La Kaffa (Taiwan) Volatility
| 2732 Stock | TWD 103.50 0.50 0.48% |
At this stage we consider 2732 Stock to be very steady. La Kaffa International retains Efficiency (Sharpe Ratio) of 0.0057, which conveys that the firm had a 0.0057% return per unit of price deviation over the last 3 months. We have found twenty-nine technical indicators for La Kaffa, which you can use to evaluate the volatility of the firm. Please verify La Kaffa's Mean Deviation of 0.8402, market risk adjusted performance of (0.01), and Standard Deviation of 1.2 to check out if the risk estimate we provide is consistent with the expected return of 0.0068%. Key indicators related to La Kaffa's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
La Kaffa 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 2732 daily returns, and it is calculated using variance and standard deviation. We also use 2732's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of La Kaffa volatility.
2732 |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as La Kaffa 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 La Kaffa at lower prices. For example, an investor can purchase 2732 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 La Kaffa'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.
La Kaffa Market Sensitivity And Downside Risk
La Kaffa's beta coefficient measures the volatility of 2732 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 2732 stock's returns against your selected market. In other words, La Kaffa's beta of 0.14 provides an investor with an approximation of how much risk La Kaffa stock can potentially add to one of your existing portfolios. La Kaffa International has relatively low volatility with skewness of 0.5 and kurtosis of 2.58. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure La Kaffa'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 La Kaffa'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 La Kaffa International Demand TrendCheck current 90 days La Kaffa correlation with market (Dow Jones Industrial)2732 Beta |
2732 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 | 1.19 |
It is essential to understand the difference between upside risk (as represented by La Kaffa's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of La Kaffa's daily returns or price. Since the actual investment returns on holding a position in 2732 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 La Kaffa.
La Kaffa International Stock Volatility Analysis
Volatility refers to the frequency at which La Kaffa stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with La Kaffa's price changes. Investors will then calculate the volatility of La Kaffa'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 La Kaffa's volatility:
Historical Volatility
This type of stock volatility measures La Kaffa's fluctuations based on previous trends. It's commonly used to predict La Kaffa'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 La Kaffa'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 La Kaffa'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. La Kaffa International 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.
La Kaffa Projected Return Density Against Market
Assuming the 90 days trading horizon La Kaffa has a beta of 0.1384 . This suggests as returns on the market go up, La Kaffa average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding La Kaffa International 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 La Kaffa or Beverages-Non-Alcoholic 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 La Kaffa'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 2732 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.
La Kaffa International 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 |
What Drives a La Kaffa 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.La Kaffa Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of La Kaffa is 17500.5. The daily returns are distributed with a variance of 1.42 and standard deviation of 1.19. The mean deviation of La Kaffa International is currently at 0.81. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 1.19 | |
Ir | Information ratio | -0.1 |
La Kaffa Stock Return Volatility
La Kaffa historical daily return volatility represents how much of La Kaffa stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 1.192% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About La Kaffa Volatility
Volatility is a rate at which the price of La Kaffa 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 La Kaffa may increase or decrease. In other words, similar to 2732's beta indicator, it measures the risk of La Kaffa and helps estimate the fluctuations that may happen in a short period of time. So if prices of La Kaffa 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.3 ways to utilize La Kaffa's volatility to invest better
Higher La Kaffa's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of La Kaffa International 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. La Kaffa International 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 La Kaffa International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in La Kaffa'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 La Kaffa's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
La Kaffa Investment Opportunity
La Kaffa International has a volatility of 1.19 and is 1.59 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of La Kaffa International is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use La Kaffa International to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of La Kaffa to be traded at NT$102.47 in 90 days.Significant diversification
The correlation between La Kaffa International and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding La Kaffa International and DJI in the same portfolio, assuming nothing else is changed.
La Kaffa Additional Risk Indicators
The analysis of La Kaffa'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 La Kaffa's investment and either accepting that risk or mitigating it. Along with some common measures of La Kaffa 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 | 0.008 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 0.8402 | |||
| Semi Deviation | 0.9587 | |||
| Downside Deviation | 1.21 | |||
| Coefficient Of Variation | 17321.56 | |||
| Standard Deviation | 1.2 |
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.
La Kaffa 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.
| Ford vs. La Kaffa | ||
| Citigroup vs. La Kaffa | ||
| Microsoft vs. La Kaffa | ||
| Visa vs. La Kaffa | ||
| Dupont De vs. La Kaffa | ||
| GM vs. La Kaffa | ||
| Salesforce vs. La Kaffa | ||
| Alphabet vs. La Kaffa | ||
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 La Kaffa 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. La Kaffa'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, La Kaffa'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 La Kaffa International.
Additional Tools for 2732 Stock Analysis
When running La Kaffa's price analysis, check to measure La Kaffa'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 La Kaffa is operating at the current time. Most of La Kaffa's value examination focuses on studying past and present price action to predict the probability of La Kaffa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move La Kaffa's price. Additionally, you may evaluate how the addition of La Kaffa to your portfolios can decrease your overall portfolio volatility.