DOMESCO Medical (Vietnam) Volatility
| DMC Stock | 83,000 5,100 5.79% |
DOMESCO Medical appears to be very steady, given 3 months investment horizon. DOMESCO Medical Import secures Sharpe Ratio (or Efficiency) of 0.19, which denotes the company had a 0.19 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for DOMESCO Medical Import, which you can use to evaluate the volatility of the firm. Please utilize DOMESCO Medical's Semi Deviation of 1.2, downside deviation of 1.9, and Mean Deviation of 1.52 to check if our risk estimates are consistent with your expectations. Key indicators related to DOMESCO Medical's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
DOMESCO Medical 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 DOMESCO daily returns, and it is calculated using variance and standard deviation. We also use DOMESCO's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DOMESCO Medical volatility.
DOMESCO |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as DOMESCO Medical can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of DOMESCO Medical at lower prices. For example, an investor can purchase DOMESCO stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of DOMESCO Medical's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against DOMESCO Stock
| 0.8 | ADS | Damsan JSC | PairCorr |
| 0.77 | APG | APG Securities Joint | PairCorr |
| 0.64 | AME | Alphanam ME | PairCorr |
| 0.62 | FIT | FIT INVEST JSC | PairCorr |
| 0.4 | AAA | An Phat Plastic | PairCorr |
DOMESCO Medical Market Sensitivity And Downside Risk
DOMESCO Medical's beta coefficient measures the volatility of DOMESCO 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 DOMESCO stock's returns against your selected market. In other words, DOMESCO Medical's beta of -0.32 provides an investor with an approximation of how much risk DOMESCO Medical stock can potentially add to one of your existing portfolios. DOMESCO Medical Import has relatively low volatility with skewness of 1.22 and kurtosis of 2.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DOMESCO Medical'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 DOMESCO Medical'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 DOMESCO Medical Import Demand TrendCheck current 90 days DOMESCO Medical correlation with market (Dow Jones Industrial)DOMESCO Beta |
DOMESCO 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 | 2.53 |
It is essential to understand the difference between upside risk (as represented by DOMESCO Medical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of DOMESCO Medical's daily returns or price. Since the actual investment returns on holding a position in domesco 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 DOMESCO Medical.
DOMESCO Medical Import Stock Volatility Analysis
Volatility refers to the frequency at which DOMESCO Medical stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with DOMESCO Medical's price changes. Investors will then calculate the volatility of DOMESCO Medical'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 DOMESCO Medical's volatility:
Historical Volatility
This type of stock volatility measures DOMESCO Medical's fluctuations based on previous trends. It's commonly used to predict DOMESCO Medical'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 DOMESCO Medical'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 DOMESCO Medical'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. DOMESCO Medical Import 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.
DOMESCO Medical Projected Return Density Against Market
Assuming the 90 days trading horizon DOMESCO Medical Import has a beta of -0.3212 suggesting as returns on the benchmark increase, returns on holding DOMESCO Medical are expected to decrease at a much lower rate. During a bear market, however, DOMESCO Medical Import 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 DOMESCO Medical or Pharmaceuticals 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 DOMESCO Medical'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 DOMESCO 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.
DOMESCO Medical Import has an alpha of 0.3691, implying that it can generate a 0.37 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a DOMESCO Medical 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.DOMESCO Medical Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of DOMESCO Medical is 535.63. The daily returns are distributed with a variance of 6.4 and standard deviation of 2.53. The mean deviation of DOMESCO Medical Import is currently at 1.77. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.37 | |
β | Beta against Dow Jones | -0.32 | |
σ | Overall volatility | 2.53 | |
Ir | Information ratio | 0.11 |
DOMESCO Medical Stock Return Volatility
DOMESCO Medical historical daily return volatility represents how much of DOMESCO Medical stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 2.5292% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8524% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About DOMESCO Medical Volatility
Volatility is a rate at which the price of DOMESCO Medical 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 DOMESCO Medical may increase or decrease. In other words, similar to DOMESCO's beta indicator, it measures the risk of DOMESCO Medical and helps estimate the fluctuations that may happen in a short period of time. So if prices of DOMESCO Medical 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.3 ways to utilize DOMESCO Medical's volatility to invest better
Higher DOMESCO Medical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of DOMESCO Medical Import 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. DOMESCO Medical Import 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 DOMESCO Medical Import investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in DOMESCO Medical'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 DOMESCO Medical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
DOMESCO Medical Investment Opportunity
DOMESCO Medical Import has a volatility of 2.53 and is 2.98 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than DOMESCO Medical. You can use DOMESCO Medical Import to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of DOMESCO Medical to be traded at 78850.0 in 90 days.Good diversification
The correlation between DOMESCO Medical Import and DJI is -0.12 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DOMESCO Medical Import and DJI in the same portfolio, assuming nothing else is changed.
DOMESCO Medical Additional Risk Indicators
The analysis of DOMESCO Medical'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 DOMESCO Medical's investment and either accepting that risk or mitigating it. Along with some common measures of DOMESCO Medical 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 | 0.1342 | |||
| Market Risk Adjusted Performance | (1.05) | |||
| Mean Deviation | 1.52 | |||
| Semi Deviation | 1.2 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 653.12 | |||
| Standard Deviation | 2.29 |
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.
DOMESCO Medical 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 DOMESCO Medical 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. DOMESCO Medical'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, DOMESCO Medical'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 DOMESCO Medical Import.
Other Information on Investing in DOMESCO Stock
DOMESCO Medical financial ratios help investors to determine whether DOMESCO 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 DOMESCO with respect to the benefits of owning DOMESCO Medical security.