Channel Well (Taiwan) Volatility
| 3078 Stock | TWD 84.10 0.70 0.83% |
Channel Well appears to be very steady, given 3 months investment horizon. Channel Well Technology secures Sharpe Ratio (or Efficiency) of 0.16, which signifies that the company had a 0.16 % return per unit of standard deviation over the last 3 months. We have found twenty-five technical indicators for Channel Well Technology, which you can use to evaluate the volatility of the firm. Please makes use of Channel Well's semi deviation of 1.67, and Risk Adjusted Performance of 0.1427 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Channel Well's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Channel Well 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 Channel daily returns, and it is calculated using variance and standard deviation. We also use Channel's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Channel Well volatility.
Channel |
Channel Well Technology Stock Volatility Analysis
Volatility refers to the frequency at which Channel Well stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Channel Well's price changes. Investors will then calculate the volatility of Channel Well'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 Channel Well's volatility:
Historical Volatility
This type of stock volatility measures Channel Well's fluctuations based on previous trends. It's commonly used to predict Channel Well'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 Channel Well'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 Channel Well'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. Channel Well Technology 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.
Channel Well Projected Return Density Against Market
Assuming the 90 days trading horizon Channel Well has a beta that is very close to zero . This suggests the returns on DOW JONES INDUSTRIAL and Channel Well do not appear to be correlated.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 Channel Well or Channel 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 Channel Well'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 Channel 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.
It does not look like Channel Well's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives a Channel Well 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.Channel Well Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Channel Well is 610.0. The daily returns are distributed with a variance of 6.85 and standard deviation of 2.62. The mean deviation of Channel Well Technology is currently at 1.89. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 2.62 | |
Ir | Information ratio | 0.21 |
Channel Well Stock Return Volatility
Channel Well historical daily return volatility represents how much of Channel Well stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 2.6163% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.9033% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Channel Well Volatility
Volatility is a rate at which the price of Channel Well 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 Channel Well may increase or decrease. In other words, similar to Channel's beta indicator, it measures the risk of Channel Well and helps estimate the fluctuations that may happen in a short period of time. So if prices of Channel Well 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 Channel Well's volatility to invest better
Higher Channel Well's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Channel Well Technology 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. Channel Well Technology 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 Channel Well Technology investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Channel Well'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 Channel Well's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Channel Well Investment Opportunity
Channel Well Technology has a volatility of 2.62 and is 2.91 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Channel Well Technology is lower than 23 percent of all global equities and portfolios over the last 90 days. You can use Channel Well Technology to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Channel Well to be traded at NT$82.42 in 90 days.Channel Well Additional Risk Indicators
The analysis of Channel Well'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 Channel Well's investment and either accepting that risk or mitigating it. Along with some common measures of Channel Well 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 | 0.1427 | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 1.67 | |||
| Downside Deviation | 2.08 | |||
| Coefficient Of Variation | 621.47 | |||
| Standard Deviation | 2.73 | |||
| Variance | 7.46 |
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.
Channel Well 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 Channel Well 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. Channel Well'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, Channel Well'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 Channel Well Technology.
Additional Tools for Channel Stock Analysis
When running Channel Well's price analysis, check to measure Channel Well'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 Channel Well is operating at the current time. Most of Channel Well's value examination focuses on studying past and present price action to predict the probability of Channel Well's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Channel Well's price. Additionally, you may evaluate how the addition of Channel Well to your portfolios can decrease your overall portfolio volatility.