Huatai Securities (China) Volatility
| 601688 Stock | 18.17 0.20 1.11% |
Huatai Securities appears to be somewhat reliable, given 3 months investment horizon. Huatai Securities holds Efficiency (Sharpe) Ratio of 0.23, which attests that the entity had a 0.23% return per unit of standard deviation over the last 3 months. By evaluating Huatai Securities' technical indicators, you can evaluate if the expected return of 0.71% is justified by implied risk. Please utilize Huatai Securities' market risk adjusted performance of 102.58, and Risk Adjusted Performance of 0.1725 to validate if our risk estimates are consistent with your expectations. Key indicators related to Huatai Securities' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Huatai Securities 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 Huatai daily returns, and it is calculated using variance and standard deviation. We also use Huatai's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Huatai Securities volatility.
Huatai |
ESG Sustainability
While most ESG disclosures are voluntary, Huatai Securities' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Huatai Securities' managers and investors.Environment Score | Governance Score | Social Score |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Huatai Securities 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 Huatai Securities at lower prices to lower their average cost per share. Similarly, when the prices of Huatai Securities' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Huatai Stock
| 0.85 | 688235 | BeiGene | PairCorr |
| 0.84 | 600519 | Kweichow Moutai | PairCorr |
| 0.62 | 603444 | G bits Network | PairCorr |
| 0.98 | 000661 | Changchun High New | PairCorr |
| 0.95 | 002371 | NAURA Technology | PairCorr |
| 0.97 | 300750 | Contemporary Amperex | PairCorr |
Huatai Securities Market Sensitivity And Downside Risk
Huatai Securities' beta coefficient measures the volatility of Huatai 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 Huatai stock's returns against your selected market. In other words, Huatai Securities's beta of 0.0062 provides an investor with an approximation of how much risk Huatai Securities stock can potentially add to one of your existing portfolios. Huatai Securities Co currently demonstrates below-average downside deviation. It has Information Ratio of 0.17 and Jensen Alpha of 0.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Huatai Securities' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Huatai Securities' 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 Huatai Securities Demand TrendCheck current 90 days Huatai Securities correlation with market (Dow Jones Industrial)Huatai Beta |
Huatai 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 | 3.16 |
It is essential to understand the difference between upside risk (as represented by Huatai Securities's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Huatai Securities' daily returns or price. Since the actual investment returns on holding a position in huatai 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 Huatai Securities.
Huatai Securities Stock Volatility Analysis
Volatility refers to the frequency at which Huatai Securities stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Huatai Securities' price changes. Investors will then calculate the volatility of Huatai Securities' 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 Huatai Securities' volatility:
Historical Volatility
This type of stock volatility measures Huatai Securities' fluctuations based on previous trends. It's commonly used to predict Huatai Securities' 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 Huatai Securities' 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 Huatai Securities' 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. Huatai Securities 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.
Huatai Securities Projected Return Density Against Market
Assuming the 90 days trading horizon Huatai Securities has a beta of 0.0062 . This suggests as returns on the market go up, Huatai Securities average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Huatai Securities Co 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 Huatai Securities or Capital Markets 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 Huatai Securities' 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 Huatai 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.
Huatai Securities Co has an alpha of 0.6352, implying that it can generate a 0.64 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Huatai Securities 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.Huatai Securities Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Huatai Securities is 444.33. The daily returns are distributed with a variance of 10.0 and standard deviation of 3.16. The mean deviation of Huatai Securities Co is currently at 2.11. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.64 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 3.16 | |
Ir | Information ratio | 0.17 |
Huatai Securities Stock Return Volatility
Huatai Securities historical daily return volatility represents how much of Huatai Securities stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.1627% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7464% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Huatai Securities Volatility
Volatility is a rate at which the price of Huatai Securities 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 Huatai Securities may increase or decrease. In other words, similar to Huatai's beta indicator, it measures the risk of Huatai Securities and helps estimate the fluctuations that may happen in a short period of time. So if prices of Huatai Securities 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 Huatai Securities' volatility to invest better
Higher Huatai Securities' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Huatai Securities 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. Huatai Securities 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 Huatai Securities investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Huatai Securities' 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 Huatai Securities' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Huatai Securities Investment Opportunity
Huatai Securities Co has a volatility of 3.16 and is 4.21 times more volatile than Dow Jones Industrial. 28 percent of all equities and portfolios are less risky than Huatai Securities. You can use Huatai Securities Co to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Huatai Securities to be traded at 19.99 in 90 days.Huatai Securities Additional Risk Indicators
The analysis of Huatai Securities' 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 Huatai Securities' investment and either accepting that risk or mitigating it. Along with some common measures of Huatai Securities 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 | 0.1725 | |||
| Market Risk Adjusted Performance | 102.58 | |||
| Mean Deviation | 1.96 | |||
| Semi Deviation | 1.69 | |||
| Downside Deviation | 2.24 | |||
| Coefficient Of Variation | 462.89 | |||
| Standard Deviation | 2.99 |
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.
Huatai Securities 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 Huatai Securities 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. Huatai Securities' 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, Huatai Securities' 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 Huatai Securities Co.
Complementary Tools for Huatai Stock analysis
When running Huatai Securities' price analysis, check to measure Huatai Securities' 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 Huatai Securities is operating at the current time. Most of Huatai Securities' value examination focuses on studying past and present price action to predict the probability of Huatai Securities' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Huatai Securities' price. Additionally, you may evaluate how the addition of Huatai Securities to your portfolios can decrease your overall portfolio volatility.
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |