CIMB Thai (Thailand) Volatility
| CIMBT Stock | THB 0.49 0.02 4.26% |
CIMB Thai Bank secures Sharpe Ratio (or Efficiency) of -0.065, which signifies that the company had a -0.065 % return per unit of risk over the last 3 months. CIMB Thai Bank exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm CIMB Thai's risk adjusted performance of (0.05), and Mean Deviation of 1.57 to double-check the risk estimate we provide. Key indicators related to CIMB Thai's volatility include:
150 Days Market Risk | Chance Of Distress | 150 Days Economic Sensitivity |
CIMB Thai 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 CIMB daily returns, and it is calculated using variance and standard deviation. We also use CIMB's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CIMB Thai volatility.
CIMB |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CIMB Thai 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 CIMB Thai at lower prices to lower their average cost per share. Similarly, when the prices of CIMB Thai's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with CIMB Stock
| 0.84 | PTT-R | PTT Public | PairCorr |
| 0.84 | PTT | PTT Public | PairCorr |
| 0.72 | PTTGC | PTT Global Chemical | PairCorr |
| 0.9 | CPALL | CP ALL Public | PairCorr |
| 0.9 | CPALL-R | CP ALL Public | PairCorr |
| 0.86 | SCC-R | Siam Cement | PairCorr |
| 0.93 | SCC | Siam Cement | PairCorr |
| 0.92 | CPF | Charoen Pokphand Foods | PairCorr |
| 0.92 | CPF-R | Charoen Pokphand Foods | PairCorr |
CIMB Thai Market Sensitivity And Downside Risk
CIMB Thai's beta coefficient measures the volatility of CIMB 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 CIMB stock's returns against your selected market. In other words, CIMB Thai's beta of 0.62 provides an investor with an approximation of how much risk CIMB Thai stock can potentially add to one of your existing portfolios. CIMB Thai Bank exhibits very low volatility with skewness of 0.46 and kurtosis of -0.14. CIMB Thai Bank is a potential penny stock. Although CIMB Thai may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in CIMB Thai Bank. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on CIMB instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze CIMB Thai Bank Demand TrendCheck current 90 days CIMB Thai correlation with market (Dow Jones Industrial)CIMB Beta |
CIMB 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 | 2.14 |
It is essential to understand the difference between upside risk (as represented by CIMB Thai's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CIMB Thai's daily returns or price. Since the actual investment returns on holding a position in cimb 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 CIMB Thai.
CIMB Thai Bank Stock Volatility Analysis
Volatility refers to the frequency at which CIMB Thai stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CIMB Thai's price changes. Investors will then calculate the volatility of CIMB Thai'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 CIMB Thai's volatility:
Historical Volatility
This type of stock volatility measures CIMB Thai's fluctuations based on previous trends. It's commonly used to predict CIMB Thai'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 CIMB Thai'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 CIMB Thai'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. CIMB Thai 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.
CIMB Thai Projected Return Density Against Market
Assuming the 90 days trading horizon CIMB Thai has a beta of 0.617 suggesting as returns on the market go up, CIMB Thai average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding CIMB Thai 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 CIMB Thai or Banks 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 CIMB Thai'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 CIMB 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.
CIMB Thai Bank 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 a CIMB Thai 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.CIMB Thai Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of CIMB Thai is -1538.67. The daily returns are distributed with a variance of 4.6 and standard deviation of 2.14. The mean deviation of CIMB Thai Bank is currently at 1.62. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | -0.22 | |
β | Beta against Dow Jones | 0.62 | |
σ | Overall volatility | 2.14 | |
Ir | Information ratio | -0.12 |
CIMB Thai Stock Return Volatility
CIMB Thai historical daily return volatility represents how much of CIMB Thai stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.1438% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8521% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CIMB Thai Volatility
Volatility is a rate at which the price of CIMB Thai 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 CIMB Thai may increase or decrease. In other words, similar to CIMB's beta indicator, it measures the risk of CIMB Thai and helps estimate the fluctuations that may happen in a short period of time. So if prices of CIMB Thai 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.CIMB Thai Bank Public Company Limited provides various banking and financial products and services to individuals and commercial customers in Thailand. CIMB Thai Bank Public Company Limited is a subsidiary of CIMB Bank Berhad. CIMB THAI operates under Banks - Regional - Asia classification in Thailand and is traded on Stock Exchange of Thailand.
CIMB Thai'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 CIMB Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CIMB Thai's price varies over time.
3 ways to utilize CIMB Thai's volatility to invest better
Higher CIMB Thai's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CIMB Thai 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. CIMB Thai 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 CIMB Thai Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CIMB Thai'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 CIMB Thai's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CIMB Thai Investment Opportunity
CIMB Thai Bank has a volatility of 2.14 and is 2.52 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than CIMB Thai. You can use CIMB Thai Bank to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of CIMB Thai to be traded at 0.6125 in 90 days.Modest diversification
The correlation between CIMB Thai Bank and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CIMB Thai Bank and DJI in the same portfolio, assuming nothing else is changed.
CIMB Thai Additional Risk Indicators
The analysis of CIMB Thai'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 CIMB Thai's investment and either accepting that risk or mitigating it. Along with some common measures of CIMB Thai 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 | (0.05) | |||
| Market Risk Adjusted Performance | (0.25) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (1,373) | |||
| Standard Deviation | 2.1 | |||
| Variance | 4.42 | |||
| Information Ratio | (0.12) |
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.
CIMB Thai 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 CIMB Thai 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. CIMB Thai'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, CIMB Thai'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 CIMB Thai Bank.
Complementary Tools for CIMB Stock analysis
When running CIMB Thai's price analysis, check to measure CIMB Thai'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 CIMB Thai is operating at the current time. Most of CIMB Thai's value examination focuses on studying past and present price action to predict the probability of CIMB Thai's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CIMB Thai's price. Additionally, you may evaluate how the addition of CIMB Thai to your portfolios can decrease your overall portfolio volatility.
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