JLK (Korea) Volatility

322510 Stock   8,160  270.00  3.42%   
JLK Inc holds Efficiency (Sharpe) Ratio of -0.0407, which attests that the entity had a -0.0407% return per unit of risk over the last 3 months. JLK Inc exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out JLK's Market Risk Adjusted Performance of 0.1089, coefficient of variation of (7,165), and insignificant Risk Adjusted Performance to validate the risk estimate we provide.
  
JLK 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 JLK daily returns, and it is calculated using variance and standard deviation. We also use JLK's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of JLK volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as JLK 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 JLK at lower prices to lower their average cost per share. Similarly, when the prices of JLK's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with JLK Stock

  0.66005935 Samsung ElectronicsPairCorr
  0.63005930 Samsung ElectronicsPairCorr
  0.84051915 LG ChemPairCorr
  0.85051910 LG ChemicalsPairCorr
  0.84006400 Samsung SDIPairCorr
  0.86005387 Hyundai MotorPairCorr

JLK Market Sensitivity And Downside Risk

JLK's beta coefficient measures the volatility of JLK 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 JLK stock's returns against your selected market. In other words, JLK's beta of -0.82 provides an investor with an approximation of how much risk JLK stock can potentially add to one of your existing portfolios. JLK Inc exhibits very low volatility with skewness of 0.17 and kurtosis of -0.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure JLK'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 JLK'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 JLK Inc Demand Trend
Check current 90 days JLK correlation with market (Dow Jones Industrial)

JLK Beta

    
  -0.82  
JLK 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

    
  5.13  
It is essential to understand the difference between upside risk (as represented by JLK's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of JLK's daily returns or price. Since the actual investment returns on holding a position in jlk 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 JLK.

JLK Inc Stock Volatility Analysis

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

Historical Volatility

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

JLK Projected Return Density Against Market

Assuming the 90 days trading horizon JLK Inc has a beta of -0.8182 . This suggests as returns on the benchmark increase, returns on holding JLK are expected to decrease at a much lower rate. During a bear market, however, JLK Inc is likely to outperform the market.
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 JLK or JLK 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 JLK'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 JLK 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.
JLK Inc 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  
JLK's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how jlk 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 JLK 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.

JLK Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of JLK is -2456.33. The daily returns are distributed with a variance of 26.36 and standard deviation of 5.13. The mean deviation of JLK Inc is currently at 4.16. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α
Alpha over Dow Jones
-0.0072
β
Beta against Dow Jones-0.82
σ
Overall volatility
5.13
Ir
Information ratio -0.03

JLK Stock Return Volatility

JLK historical daily return volatility represents how much of JLK stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 5.1343% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7242% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

JLK Investment Opportunity

JLK Inc has a volatility of 5.13 and is 7.13 times more volatile than Dow Jones Industrial. 45 percent of all equities and portfolios are less risky than JLK. You can use JLK Inc to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of JLK to be traded at 9792.0 in 90 days.

Good diversification

The correlation between JLK Inc and DJI is -0.12 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding JLK Inc and DJI in the same portfolio, assuming nothing else is changed.

JLK Additional Risk Indicators

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

JLK 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 JLK 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. JLK'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, JLK'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 JLK Inc.

Complementary Tools for JLK Stock analysis

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