Dell Technologies Stock Volatility
| DELL Stock | USD 138.92 4.96 3.70% |
Dell Technologies appears to be very steady, given 3 months investment horizon. Dell Technologies secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had a 0.15% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Dell Technologies, which you can use to evaluate the volatility of the firm. Please utilize Dell Technologies' Coefficient Of Variation of 778.22, downside deviation of 2.35, and Mean Deviation of 1.99 to check if our risk estimates are consistent with your expectations. Key indicators related to Dell Technologies' volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Dell Technologies 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 Dell daily returns, and it is calculated using variance and standard deviation. We also use Dell's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Dell Technologies volatility.
Dell |
ESG Sustainability
While most ESG disclosures are voluntary, Dell Technologies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Dell Technologies' managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Dell Technologies at lower prices. For example, an investor can purchase Dell 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 Dell Stock
Moving against Dell Stock
| 0.83 | ENPH | Enphase Energy | PairCorr |
| 0.77 | FRGT | Freight Technologies | PairCorr |
| 0.74 | VRRM | Verra Mobility Corp | PairCorr |
| 0.74 | SEDG | SolarEdge Technologies | PairCorr |
| 0.68 | ADBE | Adobe Systems Fiscal Year End 11th of December 2024 | PairCorr |
| 0.58 | FSLR | First Solar | PairCorr |
Dell Technologies Market Sensitivity And Downside Risk
Dell Technologies' beta coefficient measures the volatility of Dell 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 Dell stock's returns against your selected market. In other words, Dell Technologies's beta of 1.69 provides an investor with an approximation of how much risk Dell Technologies stock can potentially add to one of your existing portfolios. Dell Technologies currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dell Technologies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dell Technologies' 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 Dell Technologies Demand TrendCheck current 90 days Dell Technologies correlation with market (Dow Jones Industrial)Dell Beta |
Dell 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 | 2.57 |
It is essential to understand the difference between upside risk (as represented by Dell Technologies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Dell Technologies' daily returns or price. Since the actual investment returns on holding a position in dell 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 Dell Technologies.
Dell Technologies Stock Volatility Analysis
Volatility refers to the frequency at which Dell Technologies stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Dell Technologies' price changes. Investors will then calculate the volatility of Dell Technologies' 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 Dell Technologies' volatility:
Historical Volatility
This type of stock volatility measures Dell Technologies' fluctuations based on previous trends. It's commonly used to predict Dell Technologies' 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 Dell Technologies' 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 Dell Technologies' 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. Dell Technologies 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.
Dell Technologies Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.6856 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Dell Technologies will likely underperform.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 Dell Technologies or Technology Hardware, Storage & Peripherals 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 Dell Technologies' 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 Dell 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.
Dell Technologies has an alpha of 0.1723, implying that it can generate a 0.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Dell Technologies 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.Dell Technologies Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Dell Technologies is 685.46. The daily returns are distributed with a variance of 6.61 and standard deviation of 2.57. The mean deviation of Dell Technologies is currently at 2.02. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | 1.69 | |
σ | Overall volatility | 2.57 | |
Ir | Information ratio | 0.09 |
Dell Technologies Stock Return Volatility
Dell Technologies historical daily return volatility represents how much of Dell Technologies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.5705% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Dell Technologies Volatility
Volatility is a rate at which the price of Dell Technologies 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 Dell Technologies may increase or decrease. In other words, similar to Dell's beta indicator, it measures the risk of Dell Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dell Technologies 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 900 M | 863.7 M | |
| Market Cap | 54.9 B | 30.5 B |
Dell Technologies' 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 Dell Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Dell Technologies' price varies over time.
3 ways to utilize Dell Technologies' volatility to invest better
Higher Dell Technologies' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Dell Technologies 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. Dell Technologies 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 Dell Technologies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Dell Technologies' 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 Dell Technologies' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Dell Technologies Investment Opportunity
Dell Technologies has a volatility of 2.57 and is 3.38 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Dell Technologies is lower than 22 percent of all global equities and portfolios over the last 90 days. You can use Dell Technologies to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Dell Technologies to be traded at $166.7 in 90 days.Very weak diversification
The correlation between Dell Technologies and DJI is 0.5 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dell Technologies and DJI in the same portfolio, assuming nothing else is changed.
Dell Technologies Additional Risk Indicators
The analysis of Dell Technologies' 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 Dell Technologies' investment and either accepting that risk or mitigating it. Along with some common measures of Dell Technologies 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 | 0.1038 | |||
| Market Risk Adjusted Performance | 0.1976 | |||
| Mean Deviation | 1.99 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.35 | |||
| Coefficient Of Variation | 778.22 | |||
| Standard Deviation | 2.54 |
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.
Dell Technologies 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 Dell Technologies 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. Dell Technologies' 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, Dell Technologies' 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 Dell Technologies.
When determining whether Dell Technologies is a strong investment it is important to analyze Dell Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dell Technologies' future performance. For an informed investment choice regarding Dell Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dell Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Dell Stock please use our How to buy in Dell Stock guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Technology Hardware, Storage & Peripherals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dell Technologies. If investors know Dell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dell Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.857 | Dividend Share 1.63 | Earnings Share 5.43 | Revenue Per Share 129.078 | Quarterly Revenue Growth 0.091 |
The market value of Dell Technologies is measured differently than its book value, which is the value of Dell that is recorded on the company's balance sheet. Investors also form their own opinion of Dell Technologies' value that differs from its market value or its book value, called intrinsic value, which is Dell Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dell Technologies' market value can be influenced by many factors that don't directly affect Dell Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dell Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dell Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dell Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.