Aristocrat Leisure Limited Stock Volatility
| ARLUF Stock | USD 46.19 2.59 5.94% |
Aristocrat Leisure appears to be out of control, given 3 months investment horizon. Aristocrat Leisure secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had a 0.1 % return per unit of risk over the last 3 months. We have found twenty-four technical indicators for Aristocrat Leisure Limited, which you can use to evaluate the volatility of the firm. Please makes use of Aristocrat Leisure's Semi Deviation of 2.61, coefficient of variation of 1350.35, and Risk Adjusted Performance of 0.0698 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Aristocrat Leisure's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Aristocrat Leisure Pink Sheet 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 Aristocrat daily returns, and it is calculated using variance and standard deviation. We also use Aristocrat's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Aristocrat Leisure volatility.
Aristocrat |
Aristocrat Leisure Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Aristocrat Leisure pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Aristocrat Leisure's price changes. Investors will then calculate the volatility of Aristocrat Leisure's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Aristocrat Leisure's volatility:
Historical Volatility
This type of pink sheet volatility measures Aristocrat Leisure's fluctuations based on previous trends. It's commonly used to predict Aristocrat Leisure's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Aristocrat Leisure's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Aristocrat Leisure'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. Aristocrat Leisure 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.
Aristocrat Leisure Projected Return Density Against Market
Assuming the 90 days horizon Aristocrat Leisure has a beta that is very close to zero . This suggests the returns on DOW JONES INDUSTRIAL and Aristocrat Leisure do not appear to be reactive.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 Aristocrat Leisure or Consumer Cyclical 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 Aristocrat Leisure's price will be affected by overall pink sheet 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 Aristocrat pink sheet'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.
It does not look like Aristocrat Leisure's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives an Aristocrat Leisure Price Volatility?
Several factors can influence a pink sheet'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.Aristocrat Leisure Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Aristocrat Leisure is 980.33. The daily returns are distributed with a variance of 10.83 and standard deviation of 3.29. The mean deviation of Aristocrat Leisure Limited is currently at 2.07. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 3.29 | |
Ir | Information ratio | 0.05 |
Aristocrat Leisure Pink Sheet Return Volatility
Aristocrat Leisure historical daily return volatility represents how much of Aristocrat Leisure pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.2901% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8567% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Aristocrat Leisure Volatility
Volatility is a rate at which the price of Aristocrat Leisure 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 Aristocrat Leisure may increase or decrease. In other words, similar to Aristocrat's beta indicator, it measures the risk of Aristocrat Leisure and helps estimate the fluctuations that may happen in a short period of time. So if prices of Aristocrat Leisure 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.Aristocrat Leisure Limited, together with its subsidiaries, engages in the development, assembly, sale, distribution, and servicing of games and systems in the Americas, Australia, New Zealand, and internationally. The company was incorporated in 1984 and is headquartered in North Ryde, Australia. Aristocrat Leisure operates under Gambling classification in the United States and is traded on OTC Exchange. It employs 7000 people.
Aristocrat Leisure'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 Aristocrat Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Aristocrat Leisure's price varies over time.
3 ways to utilize Aristocrat Leisure's volatility to invest better
Higher Aristocrat Leisure's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Aristocrat Leisure 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. Aristocrat Leisure 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 Aristocrat Leisure investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Aristocrat Leisure'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 Aristocrat Leisure's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Aristocrat Leisure Investment Opportunity
Aristocrat Leisure Limited has a volatility of 3.29 and is 3.83 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Aristocrat Leisure Limited is lower than 29 percent of all global equities and portfolios over the last 90 days. You can use Aristocrat Leisure Limited to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Aristocrat Leisure to be traded at $57.74 in 90 days.Aristocrat Leisure Additional Risk Indicators
The analysis of Aristocrat Leisure'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 Aristocrat Leisure's investment and either accepting that risk or mitigating it. Along with some common measures of Aristocrat Leisure pink sheet'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 | 0.0698 | |||
| Mean Deviation | 2.22 | |||
| Semi Deviation | 2.61 | |||
| Downside Deviation | 5.26 | |||
| Coefficient Of Variation | 1350.35 | |||
| Standard Deviation | 3.6 | |||
| Variance | 12.99 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Aristocrat Leisure 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 Aristocrat Leisure 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. Aristocrat Leisure'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, Aristocrat Leisure'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 Aristocrat Leisure Limited.
Complementary Tools for Aristocrat Pink Sheet analysis
When running Aristocrat Leisure's price analysis, check to measure Aristocrat Leisure'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 Aristocrat Leisure is operating at the current time. Most of Aristocrat Leisure's value examination focuses on studying past and present price action to predict the probability of Aristocrat Leisure's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aristocrat Leisure's price. Additionally, you may evaluate how the addition of Aristocrat Leisure to your portfolios can decrease your overall portfolio volatility.
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |