Central Retail (Thailand) Volatility
| CRC Stock | THB 34.00 0.50 1.49% |
Central Retail appears to be very steady, given 3 months investment horizon. Central Retail secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had a 0.13% return per unit of risk over the last 3 months. We have found thirty technical indicators for Central Retail, which you can use to evaluate the volatility of the firm. Please makes use of Central Retail's Risk Adjusted Performance of 0.1237, mean deviation of 1.6, and Downside Deviation of 2.21 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Central Retail's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Central Retail 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 Central daily returns, and it is calculated using variance and standard deviation. We also use Central's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Central Retail volatility.
Central |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Central Retail at lower prices. For example, an investor can purchase Central stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Central Stock
| 0.82 | BBL | Bangkok Bank Public | PairCorr |
| 0.68 | KBANK-R | Kasikornbank Public | PairCorr |
| 0.72 | KBANK | Kasikornbank Public | PairCorr |
| 0.82 | KTB | Krung Thai Bank | PairCorr |
| 0.82 | KTB-R | Krung Thai Bank | PairCorr |
| 0.64 | SCB | SCB X Public | PairCorr |
Central Retail Market Sensitivity And Downside Risk
Central Retail's beta coefficient measures the volatility of Central 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 Central stock's returns against your selected market. In other words, Central Retail's beta of -0.48 provides an investor with an approximation of how much risk Central Retail stock can potentially add to one of your existing portfolios. Central Retail currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.38. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Central Retail's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Central Retail's 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 Central Retail Demand TrendCheck current 90 days Central Retail correlation with market (Dow Jones Industrial)Central Beta |
Central 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 | 2.19 |
It is essential to understand the difference between upside risk (as represented by Central Retail's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Central Retail's daily returns or price. Since the actual investment returns on holding a position in central 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 Central Retail.
Central Retail Stock Volatility Analysis
Volatility refers to the frequency at which Central Retail stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Central Retail's price changes. Investors will then calculate the volatility of Central Retail'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 Central Retail's volatility:
Historical Volatility
This type of stock volatility measures Central Retail's fluctuations based on previous trends. It's commonly used to predict Central Retail'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 Central Retail'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 Central Retail'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. Central Retail 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.
Central Retail Projected Return Density Against Market
Assuming the 90 days trading horizon Central Retail has a beta of -0.4815 suggesting as returns on the benchmark increase, returns on holding Central Retail are expected to decrease at a much lower rate. During a bear market, however, Central Retail is likely to outperform the market.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 Central Retail 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 Central Retail'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 Central 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.
Central Retail has an alpha of 0.3792, implying that it can generate a 0.38 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Central Retail 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.Central Retail Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Central Retail is 766.06. The daily returns are distributed with a variance of 4.79 and standard deviation of 2.19. The mean deviation of Central Retail is currently at 1.61. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.38 | |
β | Beta against Dow Jones | -0.48 | |
σ | Overall volatility | 2.19 | |
Ir | Information ratio | 0.09 |
Central Retail Stock Return Volatility
Central Retail historical daily return volatility represents how much of Central Retail stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 2.1889% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Central Retail Volatility
Volatility is a rate at which the price of Central Retail 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 Central Retail may increase or decrease. In other words, similar to Central's beta indicator, it measures the risk of Central Retail and helps estimate the fluctuations that may happen in a short period of time. So if prices of Central Retail 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.Central Retail Corporation Public Company Limited operates as a multi-format multi-category retailing platform in Southeast Asia and Italy. Central Retail Corporation Public Company Limited was founded in 1947 and is headquartered in Bangkok, Thailand. CENTRAL RETAIL is traded on Stock Exchange of Thailand in Thailand.
Central Retail'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 Central Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Central Retail's price varies over time.
3 ways to utilize Central Retail's volatility to invest better
Higher Central Retail's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Central Retail 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. Central Retail 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 Central Retail investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Central Retail'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 Central Retail's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Central Retail Investment Opportunity
Central Retail has a volatility of 2.19 and is 2.88 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than Central Retail. You can use Central Retail to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Central Retail to be traded at 37.4 in 90 days.Good diversification
The correlation between Central Retail and DJI is -0.17 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Central Retail and DJI in the same portfolio, assuming nothing else is changed.
Central Retail Additional Risk Indicators
The analysis of Central Retail'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 Central Retail's investment and either accepting that risk or mitigating it. Along with some common measures of Central Retail 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 | 0.1237 | |||
| Market Risk Adjusted Performance | (0.66) | |||
| Mean Deviation | 1.6 | |||
| Semi Deviation | 1.66 | |||
| Downside Deviation | 2.21 | |||
| Coefficient Of Variation | 653.91 | |||
| Standard Deviation | 2.16 |
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.
Central Retail 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 Central Retail 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. Central Retail'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, Central Retail'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 Central Retail.
Other Information on Investing in Central Stock
Central Retail financial ratios help investors to determine whether Central Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Central with respect to the benefits of owning Central Retail security.