Arcelik AS (Turkey) Volatility
| ARCLK Stock | TRY 143.40 0.20 0.14% |
Arcelik AS secures Sharpe Ratio (or Efficiency) of -0.0054, which signifies that the company had a -0.0054% return per unit of standard deviation over the last 3 months. Arcelik AS exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Arcelik AS's risk adjusted performance of 0.0238, and Mean Deviation of 1.73 to double-check the risk estimate we provide. Key indicators related to Arcelik AS's volatility include:
540 Days Market Risk | Chance Of Distress | 540 Days Economic Sensitivity |
Arcelik AS 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 Arcelik daily returns, and it is calculated using variance and standard deviation. We also use Arcelik's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Arcelik AS volatility.
Arcelik |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Arcelik AS at lower prices. For example, an investor can purchase Arcelik stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Arcelik Stock
Arcelik AS Market Sensitivity And Downside Risk
Arcelik AS's beta coefficient measures the volatility of Arcelik 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 Arcelik stock's returns against your selected market. In other words, Arcelik AS's beta of 0.5 provides an investor with an approximation of how much risk Arcelik AS stock can potentially add to one of your existing portfolios. Arcelik AS currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of -0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arcelik AS'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 Arcelik AS'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 Arcelik AS Demand TrendCheck current 90 days Arcelik AS correlation with market (Dow Jones Industrial)Arcelik Beta |
Arcelik 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 | 2.21 |
It is essential to understand the difference between upside risk (as represented by Arcelik AS's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Arcelik AS's daily returns or price. Since the actual investment returns on holding a position in arcelik 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 Arcelik AS.
Arcelik AS Stock Volatility Analysis
Volatility refers to the frequency at which Arcelik AS stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Arcelik AS's price changes. Investors will then calculate the volatility of Arcelik AS'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 Arcelik AS's volatility:
Historical Volatility
This type of stock volatility measures Arcelik AS's fluctuations based on previous trends. It's commonly used to predict Arcelik AS'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 Arcelik AS'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 Arcelik AS'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. Arcelik AS 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.
Arcelik AS Projected Return Density Against Market
Assuming the 90 days trading horizon Arcelik AS has a beta of 0.4959 . This suggests as returns on the market go up, Arcelik AS average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Arcelik AS 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 Arcelik AS or Household Durables 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 Arcelik AS'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 Arcelik 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.
Arcelik AS 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 Arcelik AS 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.Arcelik AS Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Arcelik AS is -18604.33. The daily returns are distributed with a variance of 4.89 and standard deviation of 2.21. The mean deviation of Arcelik AS is currently at 1.76. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.50 | |
σ | Overall volatility | 2.21 | |
Ir | Information ratio | -0.03 |
Arcelik AS Stock Return Volatility
Arcelik AS historical daily return volatility represents how much of Arcelik AS stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.2116% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Arcelik AS Volatility
Volatility is a rate at which the price of Arcelik AS 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 Arcelik AS may increase or decrease. In other words, similar to Arcelik's beta indicator, it measures the risk of Arcelik AS and helps estimate the fluctuations that may happen in a short period of time. So if prices of Arcelik AS 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.Arelik Anonim Sirketi, together with its subsidiaries, produces, markets, sells, services, imports, and exports consumer durable goods and electronics in Turkey and internationally. The company was incorporated in 1955 and is headquartered in Istanbul, Turkey. ARCELIK operates under Furnishings, Fixtures Appliances classification in Turkey and is traded on Istanbul Stock Exchange. It employs 41969 people.
Arcelik AS'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 Arcelik Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Arcelik AS's price varies over time.
3 ways to utilize Arcelik AS's volatility to invest better
Higher Arcelik AS's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Arcelik AS 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. Arcelik AS 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 Arcelik AS investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Arcelik AS'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 Arcelik AS's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Arcelik AS Investment Opportunity
Arcelik AS has a volatility of 2.21 and is 2.99 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than Arcelik AS. You can use Arcelik AS to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Arcelik AS to be traded at 150.57 in 90 days.Average diversification
The correlation between Arcelik AS and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Arcelik AS and DJI in the same portfolio, assuming nothing else is changed.
Arcelik AS Additional Risk Indicators
The analysis of Arcelik AS'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 Arcelik AS's investment and either accepting that risk or mitigating it. Along with some common measures of Arcelik AS 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 | 0.0238 | |||
| Market Risk Adjusted Performance | 0.0892 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 2.58 | |||
| Downside Deviation | 2.69 | |||
| Coefficient Of Variation | 4437.06 | |||
| Standard Deviation | 2.19 |
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.
Arcelik AS 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.
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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 Arcelik AS 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. Arcelik AS'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, Arcelik AS'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 Arcelik AS.
Complementary Tools for Arcelik Stock analysis
When running Arcelik AS's price analysis, check to measure Arcelik AS'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 Arcelik AS is operating at the current time. Most of Arcelik AS's value examination focuses on studying past and present price action to predict the probability of Arcelik AS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arcelik AS's price. Additionally, you may evaluate how the addition of Arcelik AS to your portfolios can decrease your overall portfolio volatility.
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