Cambricon Technologies (China) Volatility
688256 Stock | 489.00 3.00 0.61% |
Cambricon Technologies is very steady given 3 months investment horizon. Cambricon Technologies secures Sharpe Ratio (or Efficiency) of 0.22, which signifies that the company had a 0.22% return per unit of risk over the last 3 months. We were able to analyze twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.45% are justified by taking the suggested risk. Use Cambricon Technologies Risk Adjusted Performance of 0.1673, downside deviation of 4.33, and Mean Deviation of 4.19 to evaluate company specific risk that cannot be diversified away. Key indicators related to Cambricon Technologies' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Cambricon Technologies 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 Cambricon daily returns, and it is calculated using variance and standard deviation. We also use Cambricon's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cambricon Technologies volatility.
Cambricon |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cambricon Technologies 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 Cambricon Technologies at lower prices to lower their average cost per share. Similarly, when the prices of Cambricon Technologies' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Cambricon Stock
Moving against Cambricon Stock
Cambricon Technologies Market Sensitivity And Downside Risk
Cambricon Technologies' beta coefficient measures the volatility of Cambricon 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 Cambricon stock's returns against your selected market. In other words, Cambricon Technologies's beta of 0.39 provides an investor with an approximation of how much risk Cambricon Technologies stock can potentially add to one of your existing portfolios. Cambricon Technologies Corp is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cambricon Technologies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cambricon Technologies' 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 Cambricon Technologies Demand TrendCheck current 90 days Cambricon Technologies correlation with market (Dow Jones Industrial)Cambricon Beta |
Cambricon 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 | 6.51 |
It is essential to understand the difference between upside risk (as represented by Cambricon Technologies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cambricon Technologies' daily returns or price. Since the actual investment returns on holding a position in cambricon 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 Cambricon Technologies.
Cambricon Technologies Stock Volatility Analysis
Volatility refers to the frequency at which Cambricon Technologies stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cambricon Technologies' price changes. Investors will then calculate the volatility of Cambricon Technologies' 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 Cambricon Technologies' volatility:
Historical Volatility
This type of stock volatility measures Cambricon Technologies' fluctuations based on previous trends. It's commonly used to predict Cambricon Technologies' 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 Cambricon Technologies' 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 Cambricon Technologies' 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. Cambricon Technologies 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.
Cambricon Technologies Projected Return Density Against Market
Assuming the 90 days trading horizon Cambricon Technologies has a beta of 0.3941 . This suggests as returns on the market go up, Cambricon Technologies average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cambricon Technologies Corp 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 Cambricon Technologies or Semiconductors & Semiconductor Equipment 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 Cambricon Technologies' 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 Cambricon 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.
Cambricon Technologies Corp has an alpha of 1.1987, implying that it can generate a 1.2 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
Returns |
What Drives a Cambricon Technologies 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.Cambricon Technologies Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Cambricon Technologies is 447.73. The daily returns are distributed with a variance of 42.35 and standard deviation of 6.51. The mean deviation of Cambricon Technologies Corp is currently at 4.56. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 1.20 | |
β | Beta against Dow Jones | 0.39 | |
σ | Overall volatility | 6.51 | |
Ir | Information ratio | 0.19 |
Cambricon Technologies Stock Return Volatility
Cambricon Technologies historical daily return volatility represents how much of Cambricon Technologies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 6.5075% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
Timeline |
About Cambricon Technologies Volatility
Volatility is a rate at which the price of Cambricon Technologies 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 Cambricon Technologies may increase or decrease. In other words, similar to Cambricon's beta indicator, it measures the risk of Cambricon Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cambricon Technologies 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 Cambricon Technologies' volatility to invest better
Higher Cambricon Technologies' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cambricon Technologies 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. Cambricon Technologies 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 Cambricon Technologies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cambricon Technologies' 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 Cambricon Technologies' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Cambricon Technologies Investment Opportunity
Cambricon Technologies Corp has a volatility of 6.51 and is 8.35 times more volatile than Dow Jones Industrial. 57 percent of all equities and portfolios are less risky than Cambricon Technologies. You can use Cambricon Technologies Corp 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 Cambricon Technologies to be traded at 479.22 in 90 days.Significant diversification
The correlation between Cambricon Technologies Corp and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cambricon Technologies Corp and DJI in the same portfolio, assuming nothing else is changed.
Cambricon Technologies Additional Risk Indicators
The analysis of Cambricon Technologies' 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 Cambricon Technologies' investment and either accepting that risk or mitigating it. Along with some common measures of Cambricon Technologies 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 | 0.1673 | |||
Market Risk Adjusted Performance | 3.17 | |||
Mean Deviation | 4.19 | |||
Semi Deviation | 3.8 | |||
Downside Deviation | 4.33 | |||
Coefficient Of Variation | 483.76 | |||
Standard Deviation | 6.08 |
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.
Cambricon Technologies 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 Cambricon Technologies 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. Cambricon Technologies' 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, Cambricon Technologies' 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 Cambricon Technologies Corp.
Complementary Tools for Cambricon Stock analysis
When running Cambricon Technologies' price analysis, check to measure Cambricon Technologies' 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 Cambricon Technologies is operating at the current time. Most of Cambricon Technologies' value examination focuses on studying past and present price action to predict the probability of Cambricon Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cambricon Technologies' price. Additionally, you may evaluate how the addition of Cambricon Technologies to your portfolios can decrease your overall portfolio volatility.
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