DICKER DATA (Germany) Volatility
| D0D Stock | EUR 5.05 0.25 4.72% |
DICKER DATA LTD retains Efficiency (Sharpe Ratio) of -0.11, which denotes the company had a -0.11% return per unit of risk over the last 3 months. DICKER DATA exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm DICKER DATA's Variance of 3.6, market risk adjusted performance of 1.13, and Standard Deviation of 1.9 to check the risk estimate we provide. Key indicators related to DICKER DATA's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
DICKER DATA 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 DICKER daily returns, and it is calculated using variance and standard deviation. We also use DICKER's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DICKER DATA volatility.
DICKER |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as DICKER DATA 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 DICKER DATA at lower prices to lower their average cost per share. Similarly, when the prices of DICKER DATA's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against DICKER Stock
| 0.44 | UN3 | United Natural Foods Earnings Call Next Week | PairCorr |
| 0.35 | PYA | Wayside Technology | PairCorr |
| 0.31 | PQ9 | BANK MANDIRI | PairCorr |
DICKER DATA Market Sensitivity And Downside Risk
DICKER DATA's beta coefficient measures the volatility of DICKER 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 DICKER stock's returns against your selected market. In other words, DICKER DATA's beta of -0.24 provides an investor with an approximation of how much risk DICKER DATA stock can potentially add to one of your existing portfolios. DICKER DATA LTD exhibits very low volatility with skewness of -1.36 and kurtosis of 6.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DICKER DATA'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 DICKER DATA'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 DICKER DATA LTD Demand TrendCheck current 90 days DICKER DATA correlation with market (Dow Jones Industrial)DICKER Beta |
DICKER 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 | 1.92 |
It is essential to understand the difference between upside risk (as represented by DICKER DATA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of DICKER DATA's daily returns or price. Since the actual investment returns on holding a position in dicker 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 DICKER DATA.
DICKER DATA LTD Stock Volatility Analysis
Volatility refers to the frequency at which DICKER DATA stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with DICKER DATA's price changes. Investors will then calculate the volatility of DICKER DATA'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 DICKER DATA's volatility:
Historical Volatility
This type of stock volatility measures DICKER DATA's fluctuations based on previous trends. It's commonly used to predict DICKER DATA'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 DICKER DATA'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 DICKER DATA'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. DICKER DATA LTD 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.
DICKER DATA Projected Return Density Against Market
Assuming the 90 days horizon DICKER DATA LTD has a beta of -0.242 suggesting as returns on the benchmark increase, returns on holding DICKER DATA are expected to decrease at a much lower rate. During a bear market, however, DICKER DATA LTD 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 DICKER DATA 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 DICKER DATA'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 DICKER 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.
DICKER DATA LTD 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 DICKER DATA 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.DICKER DATA Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of DICKER DATA is -875.23. The daily returns are distributed with a variance of 3.67 and standard deviation of 1.92. The mean deviation of DICKER DATA LTD is currently at 1.32. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.24 | |
β | Beta against Dow Jones | -0.24 | |
σ | Overall volatility | 1.92 | |
Ir | Information ratio | -0.2 |
DICKER DATA Stock Return Volatility
DICKER DATA historical daily return volatility represents how much of DICKER DATA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.9169% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7736% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About DICKER DATA Volatility
Volatility is a rate at which the price of DICKER DATA 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 DICKER DATA may increase or decrease. In other words, similar to DICKER's beta indicator, it measures the risk of DICKER DATA and helps estimate the fluctuations that may happen in a short period of time. So if prices of DICKER DATA 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.Dicker Data Limited engages in the wholesale distribution of computer hardware, software, and related products in Australia and New Zealand. Dicker Data Limited was incorporated in 1978 and is headquartered in Kurnell, Australia. DICKER DATA operates under Electronics Computer Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 540 people.
DICKER DATA'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 DICKER Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much DICKER DATA's price varies over time.
3 ways to utilize DICKER DATA's volatility to invest better
Higher DICKER DATA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of DICKER DATA LTD 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. DICKER DATA LTD 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 DICKER DATA LTD investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in DICKER DATA'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 DICKER DATA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
DICKER DATA Investment Opportunity
DICKER DATA LTD has a volatility of 1.92 and is 2.49 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of DICKER DATA LTD is lower than 17 percent of all global equities and portfolios over the last 90 days. You can use DICKER DATA LTD to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of DICKER DATA to be traded at €4.8 in 90 days.Good diversification
The correlation between DICKER DATA LTD and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD and DJI in the same portfolio, assuming nothing else is changed.
DICKER DATA Additional Risk Indicators
The analysis of DICKER DATA'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 DICKER DATA's investment and either accepting that risk or mitigating it. Along with some common measures of DICKER DATA 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 | (0.1) | |||
| Market Risk Adjusted Performance | 1.13 | |||
| Mean Deviation | 1.32 | |||
| Coefficient Of Variation | (728.96) | |||
| Standard Deviation | 1.9 | |||
| Variance | 3.6 | |||
| Information Ratio | (0.20) |
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.
DICKER DATA 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 DICKER DATA 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. DICKER DATA'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, DICKER DATA'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 DICKER DATA LTD.
Complementary Tools for DICKER Stock analysis
When running DICKER DATA's price analysis, check to measure DICKER DATA'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 DICKER DATA is operating at the current time. Most of DICKER DATA's value examination focuses on studying past and present price action to predict the probability of DICKER DATA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DICKER DATA's price. Additionally, you may evaluate how the addition of DICKER DATA to your portfolios can decrease your overall portfolio volatility.
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