Shaanxi Beiyuan (China) Volatility
| 601568 Stock | 4.52 0.11 2.49% |
Shaanxi Beiyuan appears to be slightly risky, given 3 months investment horizon. Shaanxi Beiyuan Chemical owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.18, which indicates the firm had a 0.18% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Shaanxi Beiyuan Chemical, which you can use to evaluate the volatility of the company. Please review Shaanxi Beiyuan's Coefficient Of Variation of 672.36, risk adjusted performance of 0.1193, and Semi Deviation of 1.39 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Shaanxi Beiyuan's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Shaanxi Beiyuan 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 Shaanxi daily returns, and it is calculated using variance and standard deviation. We also use Shaanxi's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Shaanxi Beiyuan volatility.
Shaanxi |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Shaanxi Beiyuan 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 Shaanxi Beiyuan at lower prices to lower their average cost per share. Similarly, when the prices of Shaanxi Beiyuan's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Shaanxi Stock
| 0.91 | 600019 | Baoshan Iron Steel | PairCorr |
| 0.95 | 002493 | Rongsheng Petrochemical | PairCorr |
| 0.93 | 600010 | Inner Mongolia BaoTou | PairCorr |
| 0.93 | 002460 | Jiangxi Ganfeng Lithium | PairCorr |
| 0.91 | 603260 | Hoshine Silicon Ind | PairCorr |
| 0.95 | 600160 | Zhejiang Juhua | PairCorr |
Shaanxi Beiyuan Market Sensitivity And Downside Risk
Shaanxi Beiyuan's beta coefficient measures the volatility of Shaanxi 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 Shaanxi stock's returns against your selected market. In other words, Shaanxi Beiyuan's beta of -0.31 provides an investor with an approximation of how much risk Shaanxi Beiyuan stock can potentially add to one of your existing portfolios. Shaanxi Beiyuan Chemical has relatively low volatility with skewness of 0.07 and kurtosis of 3.8. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shaanxi Beiyuan'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 Shaanxi Beiyuan'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 Shaanxi Beiyuan Chemical Demand TrendCheck current 90 days Shaanxi Beiyuan correlation with market (Dow Jones Industrial)Shaanxi Beta |
Shaanxi 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 | 1.85 |
It is essential to understand the difference between upside risk (as represented by Shaanxi Beiyuan's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Shaanxi Beiyuan's daily returns or price. Since the actual investment returns on holding a position in shaanxi 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 Shaanxi Beiyuan.
Shaanxi Beiyuan Chemical Stock Volatility Analysis
Volatility refers to the frequency at which Shaanxi Beiyuan stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Shaanxi Beiyuan's price changes. Investors will then calculate the volatility of Shaanxi Beiyuan'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 Shaanxi Beiyuan's volatility:
Historical Volatility
This type of stock volatility measures Shaanxi Beiyuan's fluctuations based on previous trends. It's commonly used to predict Shaanxi Beiyuan'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 Shaanxi Beiyuan'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 Shaanxi Beiyuan'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. Shaanxi Beiyuan Chemical 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.
Shaanxi Beiyuan Projected Return Density Against Market
Assuming the 90 days trading horizon Shaanxi Beiyuan Chemical has a beta of -0.3067 . This suggests as returns on the benchmark increase, returns on holding Shaanxi Beiyuan are expected to decrease at a much lower rate. During a bear market, however, Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan or Chemicals 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 Shaanxi Beiyuan'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 Shaanxi 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.
Shaanxi Beiyuan Chemical has an alpha of 0.2877, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Shaanxi Beiyuan 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.Shaanxi Beiyuan Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Shaanxi Beiyuan is 553.22. The daily returns are distributed with a variance of 3.43 and standard deviation of 1.85. The mean deviation of Shaanxi Beiyuan Chemical is currently at 1.31. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.29 | |
β | Beta against Dow Jones | -0.31 | |
σ | Overall volatility | 1.85 | |
Ir | Information ratio | 0.08 |
Shaanxi Beiyuan Stock Return Volatility
Shaanxi Beiyuan historical daily return volatility represents how much of Shaanxi Beiyuan stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.8517% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7522% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Shaanxi Beiyuan Volatility
Volatility is a rate at which the price of Shaanxi Beiyuan 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 Shaanxi Beiyuan may increase or decrease. In other words, similar to Shaanxi's beta indicator, it measures the risk of Shaanxi Beiyuan and helps estimate the fluctuations that may happen in a short period of time. So if prices of Shaanxi Beiyuan 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 Shaanxi Beiyuan's volatility to invest better
Higher Shaanxi Beiyuan's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Shaanxi Beiyuan Chemical 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. Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan Chemical investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Shaanxi Beiyuan'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 Shaanxi Beiyuan's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Shaanxi Beiyuan Investment Opportunity
Shaanxi Beiyuan Chemical has a volatility of 1.85 and is 2.47 times more volatile than Dow Jones Industrial. 16 percent of all equities and portfolios are less risky than Shaanxi Beiyuan. You can use Shaanxi Beiyuan Chemical to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Shaanxi Beiyuan to be traded at 5.42 in 90 days.Good diversification
The correlation between Shaanxi Beiyuan Chemical and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Beiyuan Chemical and DJI in the same portfolio, assuming nothing else is changed.
Shaanxi Beiyuan Additional Risk Indicators
The analysis of Shaanxi Beiyuan'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 Shaanxi Beiyuan's investment and either accepting that risk or mitigating it. Along with some common measures of Shaanxi Beiyuan 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 | 0.1193 | |||
| Market Risk Adjusted Performance | (0.81) | |||
| Mean Deviation | 1.25 | |||
| Semi Deviation | 1.39 | |||
| Downside Deviation | 1.65 | |||
| Coefficient Of Variation | 672.36 | |||
| Standard Deviation | 1.77 |
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.
Shaanxi Beiyuan 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 Shaanxi Beiyuan 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. Shaanxi Beiyuan'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, Shaanxi Beiyuan'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 Shaanxi Beiyuan Chemical.
Complementary Tools for Shaanxi Stock analysis
When running Shaanxi Beiyuan's price analysis, check to measure Shaanxi Beiyuan'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 Shaanxi Beiyuan is operating at the current time. Most of Shaanxi Beiyuan's value examination focuses on studying past and present price action to predict the probability of Shaanxi Beiyuan's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shaanxi Beiyuan's price. Additionally, you may evaluate how the addition of Shaanxi Beiyuan to your portfolios can decrease your overall portfolio volatility.
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