Australian Unity (Australia) Volatility
| AYUPA Preferred Stock | 82.50 0.20 0.24% |
At this point, Australian Unity is very steady. Australian Unity secures Sharpe Ratio (or Efficiency) of 0.16, which signifies that the company had a 0.16% return per unit of risk over the last 3 months. We have found thirty technical indicators for Australian Unity Ltd, which you can use to evaluate the volatility of the firm. Please confirm Australian Unity's Risk Adjusted Performance of 0.1172, downside deviation of 0.5964, and Mean Deviation of 0.3909 to double-check if the risk estimate we provide is consistent with the expected return of 0.0968%. Key indicators related to Australian Unity's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Australian Unity Preferred 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 Australian daily returns, and it is calculated using variance and standard deviation. We also use Australian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Australian Unity volatility.
Australian |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Australian Unity 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 Australian Unity at lower prices to lower their average cost per share. Similarly, when the prices of Australian Unity's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Australian Preferred Stock
| 0.71 | CCP | Credit Corp Group | PairCorr |
| 0.64 | EQR | EQ Resources Earnings Call Tomorrow | PairCorr |
| 0.77 | WBCPM | Westpac Banking | PairCorr |
Moving against Australian Preferred Stock
Australian Unity Market Sensitivity And Downside Risk
Australian Unity's beta coefficient measures the volatility of Australian preferred 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 Australian preferred stock's returns against your selected market. In other words, Australian Unity's beta of 0.0969 provides an investor with an approximation of how much risk Australian Unity preferred stock can potentially add to one of your existing portfolios. Australian Unity Ltd exhibits very low volatility with skewness of 0.37 and kurtosis of 2.68. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Australian Unity's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Australian Unity's preferred 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 Australian Unity Demand TrendCheck current 90 days Australian Unity correlation with market (Dow Jones Industrial)Australian Beta |
Australian 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 | 0.6 |
It is essential to understand the difference between upside risk (as represented by Australian Unity's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Australian Unity's daily returns or price. Since the actual investment returns on holding a position in australian preferred 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 Australian Unity.
Australian Unity Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Australian Unity preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Australian Unity's price changes. Investors will then calculate the volatility of Australian Unity's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred 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 Australian Unity's volatility:
Historical Volatility
This type of preferred stock volatility measures Australian Unity's fluctuations based on previous trends. It's commonly used to predict Australian Unity's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Australian Unity's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Australian Unity'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. Australian Unity 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.
Australian Unity Projected Return Density Against Market
Assuming the 90 days trading horizon Australian Unity has a beta of 0.0969 . This suggests as returns on the market go up, Australian Unity average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Australian Unity Ltd 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 Australian Unity or Financial 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 Australian Unity's price will be affected by overall preferred 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 Australian preferred 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.
Australian Unity Ltd has an alpha of 0.0717, implying that it can generate a 0.0717 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Australian Unity Price Volatility?
Several factors can influence a preferred 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.Australian Unity Preferred Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Australian Unity is 618.15. The daily returns are distributed with a variance of 0.36 and standard deviation of 0.6. The mean deviation of Australian Unity Ltd is currently at 0.39. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.07 | |
β | Beta against Dow Jones | 0.1 | |
σ | Overall volatility | 0.60 | |
Ir | Information ratio | -0.06 |
Australian Unity Preferred Stock Return Volatility
Australian Unity historical daily return volatility represents how much of Australian Unity preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.5984% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7734% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Australian Unity Volatility
Volatility is a rate at which the price of Australian Unity 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 Australian Unity may increase or decrease. In other words, similar to Australian's beta indicator, it measures the risk of Australian Unity and helps estimate the fluctuations that may happen in a short period of time. So if prices of Australian Unity 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 Australian Unity's volatility to invest better
Higher Australian Unity's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Australian Unity preferred 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. Australian Unity preferred 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 Australian Unity investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Australian Unity's preferred 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 Australian Unity's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Australian Unity Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.77 and is 1.28 times more volatile than Australian Unity Ltd. 5 percent of all equities and portfolios are less risky than Australian Unity. You can use Australian Unity Ltd to protect your portfolios against small market fluctuations. The preferred stock experiences a normal downward trend and little activity. Check odds of Australian Unity to be traded at 81.68 in 90 days.Average diversification
The correlation between Australian Unity Ltd and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Australian Unity Ltd and DJI in the same portfolio, assuming nothing else is changed.
Australian Unity Additional Risk Indicators
The analysis of Australian Unity'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 Australian Unity's investment and either accepting that risk or mitigating it. Along with some common measures of Australian Unity preferred 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 | 0.1172 | |||
| Market Risk Adjusted Performance | 0.8705 | |||
| Mean Deviation | 0.3909 | |||
| Semi Deviation | 0.3327 | |||
| Downside Deviation | 0.5964 | |||
| Coefficient Of Variation | 636.51 | |||
| Standard Deviation | 0.5944 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Australian Unity 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 Australian Unity 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. Australian Unity'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, Australian Unity'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 Australian Unity Ltd.
Complementary Tools for Australian Preferred Stock analysis
When running Australian Unity's price analysis, check to measure Australian Unity'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 Australian Unity is operating at the current time. Most of Australian Unity's value examination focuses on studying past and present price action to predict the probability of Australian Unity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Australian Unity's price. Additionally, you may evaluate how the addition of Australian Unity to your portfolios can decrease your overall portfolio volatility.
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |