CPU Softwarehouse (Germany) Volatility
| CPU2 Stock | EUR 0.68 0.01 1.45% |
CPU Softwarehouse appears to be out of control, given 3 months investment horizon. CPU Softwarehouse secures Sharpe Ratio (or Efficiency) of 0.0455, which signifies that the company had a 0.0455 % return per unit of volatility over the last 3 months. We have found twenty-seven technical indicators for CPU Softwarehouse AG, which you can use to evaluate the volatility of the firm. Please makes use of CPU Softwarehouse's risk adjusted performance of 0.0194, and Mean Deviation of 3.73 to double-check if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0455
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Estimated Market Risk
| 6.0 actual daily | 53 53% of assets are less volatile |
Expected Return
| 0.27 actual daily | 5 95% of assets have higher returns |
Risk-Adjusted Return
| 0.05 actual daily | 3 97% of assets perform better |
Based on monthly moving average CPU Softwarehouse is performing at about 3% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of CPU Softwarehouse by adding it to a well-diversified portfolio.
Key indicators related to CPU Softwarehouse's volatility include:720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
CPU Softwarehouse 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 CPU daily returns, and it is calculated using variance and standard deviation. We also use CPU's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CPU Softwarehouse volatility.
CPU |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CPU Softwarehouse 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 CPU Softwarehouse at lower prices to lower their average cost per share. Similarly, when the prices of CPU Softwarehouse's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to CPU Softwarehouse's market risk premium analysis include:
Beta 0.37 | Alpha 0.0493 | Risk 6 | Sharpe Ratio 0.0455 | Expected Return 0.27 |
Moving against CPU Stock
| 0.69 | SYP | Synopsys | PairCorr |
| 0.54 | DBPE | Xtrackers LevDAX | PairCorr |
| 0.52 | NVPJ | TMBThanachart Bank Public Earnings Call This Week | PairCorr |
| 0.5 | PJM | PT Bumi Resources | PairCorr |
| 0.34 | E908 | Lyxor 1 | PairCorr |
CPU Softwarehouse Market Sensitivity And Downside Risk
CPU Softwarehouse's beta coefficient measures the volatility of CPU 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 CPU stock's returns against your selected market. In other words, CPU Softwarehouse's beta of 0.37 provides an investor with an approximation of how much risk CPU Softwarehouse stock can potentially add to one of your existing portfolios. CPU Softwarehouse AG is displaying above-average volatility over the selected time horizon. CPU Softwarehouse AG is a potential penny stock. Although CPU Softwarehouse 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 CPU Softwarehouse AG. 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 CPU 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 CPU Softwarehouse Demand TrendCheck current 90 days CPU Softwarehouse correlation with market (Dow Jones Industrial)CPU Softwarehouse Volatility and Downside Risk
CPU 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.
CPU Softwarehouse Stock Volatility Analysis
Volatility refers to the frequency at which CPU Softwarehouse stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CPU Softwarehouse's price changes. Investors will then calculate the volatility of CPU Softwarehouse'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 CPU Softwarehouse's volatility:
Historical Volatility
This type of stock volatility measures CPU Softwarehouse's fluctuations based on previous trends. It's commonly used to predict CPU Softwarehouse'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 CPU Softwarehouse'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 CPU Softwarehouse'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. CPU Softwarehouse 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.
CPU Softwarehouse Projected Return Density Against Market
Assuming the 90 days trading horizon CPU Softwarehouse has a beta of 0.3686 suggesting as returns on the market go up, CPU Softwarehouse average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding CPU Softwarehouse AG 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 CPU Softwarehouse or Technology 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 CPU Softwarehouse'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 CPU 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.
CPU Softwarehouse AG has an alpha of 0.0493, implying that it can generate a 0.0493 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CPU Softwarehouse 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.CPU Softwarehouse Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of CPU Softwarehouse is 2196.78. The daily returns are distributed with a variance of 36.01 and standard deviation of 6.0. The mean deviation of CPU Softwarehouse AG is currently at 3.69. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.37 | |
σ | Overall volatility | 6.00 | |
Ir | Information ratio | -0.0006 |
CPU Softwarehouse Stock Return Volatility
CPU Softwarehouse historical daily return volatility represents how much of CPU Softwarehouse stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 6.0011% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7018% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
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About CPU Softwarehouse Volatility
Volatility is a rate at which the price of CPU Softwarehouse 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 CPU Softwarehouse may increase or decrease. In other words, similar to CPU's beta indicator, it measures the risk of CPU Softwarehouse and helps estimate the fluctuations that may happen in a short period of time. So if prices of CPU Softwarehouse 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.CPU Softwarehouse AG provides IT services and software solutions for banks, bank-related institutes, industries, and IT and telecommunications companies in Germany, Austria, and Switzerland. CPU Softwarehouse AG was founded in 1987 and is based in Augsburg, Germany. CPU SOFTWAREHOUSE operates under Software Providers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 146 people.
CPU Softwarehouse'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 CPU Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CPU Softwarehouse's price varies over time.
3 ways to utilize CPU Softwarehouse's volatility to invest better
Higher CPU Softwarehouse's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CPU Softwarehouse 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. CPU Softwarehouse 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 CPU Softwarehouse investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CPU Softwarehouse'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 CPU Softwarehouse's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CPU Softwarehouse Investment Opportunity
CPU Softwarehouse AG has a volatility of 6.0 and is 8.57 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of CPU Softwarehouse AG is higher than 53 percent of all global equities and portfolios over the last 90 days. You can use CPU Softwarehouse AG to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of CPU Softwarehouse to be traded at €0.6596 in 90 days.Significant diversification
The correlation between CPU Softwarehouse AG and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CPU Softwarehouse AG and DJI in the same portfolio, assuming nothing else is changed.
CPU Softwarehouse Additional Risk Indicators
The analysis of CPU Softwarehouse'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 CPU Softwarehouse's investment and either accepting that risk or mitigating it. Along with some common measures of CPU Softwarehouse 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 | 0.0194 | |||
| Market Risk Adjusted Performance | 0.2281 | |||
| Mean Deviation | 3.73 | |||
| Semi Deviation | 4.86 | |||
| Downside Deviation | 7.11 | |||
| Coefficient Of Variation | 7015.87 | |||
| Standard Deviation | 6.34 |
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.
CPU Softwarehouse 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 CPU Softwarehouse 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. CPU Softwarehouse'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, CPU Softwarehouse'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 CPU Softwarehouse AG.
Complementary Tools for CPU Stock analysis
When running CPU Softwarehouse's price analysis, check to measure CPU Softwarehouse'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 CPU Softwarehouse is operating at the current time. Most of CPU Softwarehouse's value examination focuses on studying past and present price action to predict the probability of CPU Softwarehouse's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CPU Softwarehouse's price. Additionally, you may evaluate how the addition of CPU Softwarehouse to your portfolios can decrease your overall portfolio volatility.
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