Airbus Group (France) Volatility
| AIR Stock | EUR 137.94 1.56 1.12% |
Airbus Group SE secures Sharpe Ratio (or Efficiency) of -0.0184, which signifies that the company had a -0.0184% return per unit of risk over the last 3 months. Airbus Group SE exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Airbus Group's Standard Deviation of 1.38, risk adjusted performance of (0.01), and Mean Deviation of 1.01 to double-check the risk estimate we provide. Key indicators related to Airbus Group's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Airbus Group 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 Airbus daily returns, and it is calculated using variance and standard deviation. We also use Airbus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Airbus Group volatility.
Airbus |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Airbus Group 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 Airbus Group at lower prices to lower their average cost per share. Similarly, when the prices of Airbus Group's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Airbus Group Market Sensitivity And Downside Risk
Airbus Group's beta coefficient measures the volatility of Airbus 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 Airbus stock's returns against your selected market. In other words, Airbus Group's beta of 0.71 provides an investor with an approximation of how much risk Airbus Group stock can potentially add to one of your existing portfolios. Airbus Group SE exhibits very low volatility with skewness of 0.61 and kurtosis of 1.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Airbus Group'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 Airbus Group'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 Airbus Group SE Demand TrendCheck current 90 days Airbus Group correlation with market (Dow Jones Industrial)Airbus Beta |
Airbus 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 | 1.38 |
It is essential to understand the difference between upside risk (as represented by Airbus Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Airbus Group's daily returns or price. Since the actual investment returns on holding a position in airbus 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 Airbus Group.
Airbus Group SE Stock Volatility Analysis
Volatility refers to the frequency at which Airbus Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Airbus Group's price changes. Investors will then calculate the volatility of Airbus Group'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 Airbus Group's volatility:
Historical Volatility
This type of stock volatility measures Airbus Group's fluctuations based on previous trends. It's commonly used to predict Airbus Group'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 Airbus Group'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 Airbus Group'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. Airbus Group SE 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.
Airbus Group Projected Return Density Against Market
Assuming the 90 days trading horizon Airbus Group has a beta of 0.7127 . This suggests as returns on the market go up, Airbus Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Airbus Group SE 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 Airbus Group or Aerospace & Defense 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 Airbus Group'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 Airbus 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.
Airbus Group SE 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 |
What Drives an Airbus Group 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.Airbus Group Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Airbus Group is -5440.01. The daily returns are distributed with a variance of 1.91 and standard deviation of 1.38. The mean deviation of Airbus Group SE is currently at 1.01. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 0.71 | |
σ | Overall volatility | 1.38 | |
Ir | Information ratio | -0.11 |
Airbus Group Stock Return Volatility
Airbus Group historical daily return volatility represents how much of Airbus Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 1.3814% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Airbus Group Volatility
Volatility is a rate at which the price of Airbus Group 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 Airbus Group may increase or decrease. In other words, similar to Airbus's beta indicator, it measures the risk of Airbus Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of Airbus Group 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.Airbus SE engages in the designing, manufacturing, and delivering aerospace products, services, and solutions worldwide. Airbus SE was incorporated in 1998 and is based in Leiden, the Netherlands. AIRBUS operates under Aerospace Defense classification in France and is traded on Paris Stock Exchange. It employs 128873 people.
Airbus Group's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Airbus Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Airbus Group's price varies over time.
3 ways to utilize Airbus Group's volatility to invest better
Higher Airbus Group's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Airbus Group SE 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. Airbus Group SE 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 Airbus Group SE investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Airbus Group'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 Airbus Group's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Airbus Group Investment Opportunity
Airbus Group SE has a volatility of 1.38 and is 1.82 times more volatile than Dow Jones Industrial. 12 percent of all equities and portfolios are less risky than Airbus Group. You can use Airbus Group SE to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Airbus Group to be traded at €133.8 in 90 days.Very weak diversification
The correlation between Airbus Group SE and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and DJI in the same portfolio, assuming nothing else is changed.
Airbus Group Additional Risk Indicators
The analysis of Airbus Group'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 Airbus Group's investment and either accepting that risk or mitigating it. Along with some common measures of Airbus Group 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.01 | |||
| Coefficient Of Variation | (6,358) | |||
| Standard Deviation | 1.38 | |||
| Variance | 1.91 | |||
| Information Ratio | (0.11) |
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.
Airbus Group 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 Airbus Group 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. Airbus Group'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, Airbus Group'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 Airbus Group SE.
Complementary Tools for Airbus Stock analysis
When running Airbus Group's price analysis, check to measure Airbus Group'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 Airbus Group is operating at the current time. Most of Airbus Group's value examination focuses on studying past and present price action to predict the probability of Airbus Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Airbus Group's price. Additionally, you may evaluate how the addition of Airbus Group to your portfolios can decrease your overall portfolio volatility.
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