China Citic Bank Stock Volatility
| CHCJY Stock | USD 13.95 2.38 20.57% |
China Citic appears to be slightly risky, given 3 months investment horizon. China Citic Bank secures Sharpe Ratio (or Efficiency) of 0.0535, which signifies that the company had a 0.0535% return per unit of risk over the last 3 months. We have found twenty-two technical indicators for China Citic Bank, which you can use to evaluate the volatility of the firm. Please makes use of China Citic's Standard Deviation of 4.8, risk adjusted performance of 0.0483, and Mean Deviation of 1.79 to double-check if our risk estimates are consistent with your expectations. Key indicators related to China Citic's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
China Citic 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 China daily returns, and it is calculated using variance and standard deviation. We also use China's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of China Citic volatility.
China |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as China Citic can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of China Citic at lower prices. For example, an investor can purchase China stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of China Citic's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
China Citic Market Sensitivity And Downside Risk
China Citic's beta coefficient measures the volatility of China pink sheet 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 China pink sheet's returns against your selected market. In other words, China Citic's beta of 0.37 provides an investor with an approximation of how much risk China Citic pink sheet can potentially add to one of your existing portfolios. China Citic Bank exhibits very low volatility with skewness of 1.71 and kurtosis of 10.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Citic's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Citic's pink sheet 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 China Citic Bank Demand TrendCheck current 90 days China Citic correlation with market (Dow Jones Industrial)China Beta |
China 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 | 4.91 |
It is essential to understand the difference between upside risk (as represented by China Citic's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of China Citic's daily returns or price. Since the actual investment returns on holding a position in china pink sheet 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 China Citic.
China Citic Bank Pink Sheet Volatility Analysis
Volatility refers to the frequency at which China Citic pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with China Citic's price changes. Investors will then calculate the volatility of China Citic'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 China Citic's volatility:
Historical Volatility
This type of pink sheet volatility measures China Citic's fluctuations based on previous trends. It's commonly used to predict China Citic'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 China Citic'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 China Citic'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. China Citic Bank 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.
China Citic Projected Return Density Against Market
Assuming the 90 days horizon China Citic has a beta of 0.3709 suggesting as returns on the market go up, China Citic average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding China Citic Bank 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 China Citic or Financial Services 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 China Citic'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 China 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.
China Citic Bank has an alpha of 0.2041, implying that it can generate a 0.2 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a China Citic 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.China Citic Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of China Citic is 1868.99. The daily returns are distributed with a variance of 24.15 and standard deviation of 4.91. The mean deviation of China Citic Bank is currently at 1.87. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.20 | |
β | Beta against Dow Jones | 0.37 | |
σ | Overall volatility | 4.91 | |
Ir | Information ratio | 0.03 |
China Citic Pink Sheet Return Volatility
China Citic historical daily return volatility represents how much of China Citic pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 4.9142% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
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About China Citic Volatility
Volatility is a rate at which the price of China Citic 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 China Citic may increase or decrease. In other words, similar to China's beta indicator, it measures the risk of China Citic and helps estimate the fluctuations that may happen in a short period of time. So if prices of China Citic 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.China CITIC Bank Corporation Limited provides various banking products and services in the Peoples Republic of China and internationally. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Corporation Limited. China Citic operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 58449 people.
China Citic'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 China Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much China Citic's price varies over time.
3 ways to utilize China Citic's volatility to invest better
Higher China Citic's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of China Citic Bank 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. China Citic Bank 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 China Citic Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in China Citic'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 China Citic's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
China Citic Investment Opportunity
China Citic Bank has a volatility of 4.91 and is 6.46 times more volatile than Dow Jones Industrial. 43 percent of all equities and portfolios are less risky than China Citic. You can use China Citic Bank 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 China Citic to be traded at $17.44 in 90 days.Significant diversification
The correlation between China Citic Bank and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and DJI in the same portfolio, assuming nothing else is changed.
China Citic Additional Risk Indicators
The analysis of China Citic'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 China Citic's investment and either accepting that risk or mitigating it. Along with some common measures of China Citic 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 | 0.0483 | |||
| Market Risk Adjusted Performance | 0.6597 | |||
| Mean Deviation | 1.79 | |||
| Coefficient Of Variation | 1912.41 | |||
| Standard Deviation | 4.8 | |||
| Variance | 23.04 | |||
| Information Ratio | 0.0295 |
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.
China Citic 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 China Citic 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. China Citic'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, China Citic'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 China Citic Bank.
Additional Tools for China Pink Sheet Analysis
When running China Citic's price analysis, check to measure China Citic'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 China Citic is operating at the current time. Most of China Citic's value examination focuses on studying past and present price action to predict the probability of China Citic's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Citic's price. Additionally, you may evaluate how the addition of China Citic to your portfolios can decrease your overall portfolio volatility.