DXCO3F (Brazil) Volatility
| DXCO3F Stock | 5.60 0.35 5.88% |
At this point, DXCO3F is slightly risky. DXCO3F retains Efficiency (Sharpe Ratio) of 0.0365, which denotes the company had a 0.0365 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for DXCO3F, which you can use to evaluate the volatility of the firm. Please confirm DXCO3F's Market Risk Adjusted Performance of 0.1758, coefficient of variation of 2424.91, and Downside Deviation of 2.57 to check if the risk estimate we provide is consistent with the expected return of 0.0919%.
DXCO3F |
DXCO3F 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 DXCO3F daily returns, and it is calculated using variance and standard deviation. We also use DXCO3F's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DXCO3F volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as DXCO3F 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 DXCO3F at lower prices to lower their average cost per share. Similarly, when the prices of DXCO3F's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to DXCO3F's market risk premium analysis include:
Moving together with DXCO3F Stock
Moving against DXCO3F Stock
| 0.73 | BERK34 | Berkshire Hathaway Earnings Call This Week | PairCorr |
| 0.56 | MSFT34 | Microsoft | PairCorr |
| 0.51 | AAPL34 | Apple Inc | PairCorr |
DXCO3F Market Sensitivity And Downside Risk
DXCO3F's beta coefficient measures the volatility of DXCO3F 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 DXCO3F stock's returns against your selected market. In other words, DXCO3F's beta of 0.56 provides an investor with an approximation of how much risk DXCO3F stock can potentially add to one of your existing portfolios. DXCO3F currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DXCO3F'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 DXCO3F'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 DXCO3F Demand TrendCheck current 90 days DXCO3F correlation with market (Dow Jones Industrial)DXCO3F Volatility and Downside Risk
DXCO3F 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.
DXCO3F Stock Volatility Analysis
Volatility refers to the frequency at which DXCO3F stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with DXCO3F's price changes. Investors will then calculate the volatility of DXCO3F'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 DXCO3F's volatility:
Historical Volatility
This type of stock volatility measures DXCO3F's fluctuations based on previous trends. It's commonly used to predict DXCO3F'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 DXCO3F'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 DXCO3F'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. DXCO3F 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.
DXCO3F Projected Return Density Against Market
Assuming the 90 days trading horizon DXCO3F has a beta of 0.5587 suggesting as returns on the market go up, DXCO3F average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding DXCO3F 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 DXCO3F or DXCO3F 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 DXCO3F'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 DXCO3F 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.
Predicted Return Density |
| Returns |
What Drives a DXCO3F 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.DXCO3F Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of DXCO3F is 2740.06. The daily returns are distributed with a variance of 6.34 and standard deviation of 2.52. The mean deviation of DXCO3F is currently at 1.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.56 | |
σ | Overall volatility | 2.52 | |
Ir | Information ratio | 0.01 |
DXCO3F Stock Return Volatility
DXCO3F historical daily return volatility represents how much of DXCO3F stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.5188% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7702% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between DXCO3F Stock performing well and DXCO3F Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze DXCO3F's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| TSMC34 | 1.63 | 0.32 | 0.15 | 0.66 | 1.55 | 3.70 | 10.38 | |||
| AAPL34 | 1.12 | (0.13) | 0.00 | (0.12) | 0.00 | 2.67 | 5.97 | |||
| BABA34 | 2.04 | (0.11) | 0.00 | (0.83) | 0.00 | 4.89 | 14.44 | |||
| MSFT34 | 1.36 | (0.37) | 0.00 | (1.57) | 0.00 | 1.90 | 11.51 | |||
| B1SA34 | 1.26 | 0.22 | 0.09 | 0.34 | 1.63 | 2.70 | 11.86 | |||
| GOGL35 | 1.54 | 0.07 | 0.01 | 0.29 | 1.65 | 3.70 | 10.20 | |||
| GOGL34 | 1.61 | 0.09 | 0.03 | 0.32 | 1.79 | 3.50 | 10.40 | |||
| AMZO34 | 1.47 | (0.40) | 0.00 | (0.32) | 0.00 | 2.67 | 14.54 | |||
| H1SB34 | 1.10 | 0.23 | 0.13 | 0.53 | 1.25 | 2.33 | 9.65 | |||
| BERK34 | 0.90 | (0.02) | 0.00 | (0.56) | 0.00 | 1.96 | 6.40 |
DXCO3F Investment Opportunity
DXCO3F has a volatility of 2.52 and is 3.27 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than DXCO3F. You can use DXCO3F 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 DXCO3F to be traded at 5.36 in 90 days.Very weak diversification
The correlation between DXCO3F and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DXCO3F and DJI in the same portfolio, assuming nothing else is changed.
DXCO3F Additional Risk Indicators
The analysis of DXCO3F'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 DXCO3F's investment and either accepting that risk or mitigating it. Along with some common measures of DXCO3F 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 | 0.0402 | |||
| Market Risk Adjusted Performance | 0.1758 | |||
| Mean Deviation | 1.92 | |||
| Semi Deviation | 2.43 | |||
| Downside Deviation | 2.57 | |||
| Coefficient Of Variation | 2424.91 | |||
| Standard Deviation | 2.49 |
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.
DXCO3F 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 DXCO3F 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. DXCO3F'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, DXCO3F'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 DXCO3F.
Complementary Tools for DXCO3F Stock analysis
When running DXCO3F's price analysis, check to measure DXCO3F'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 DXCO3F is operating at the current time. Most of DXCO3F's value examination focuses on studying past and present price action to predict the probability of DXCO3F's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DXCO3F's price. Additionally, you may evaluate how the addition of DXCO3F to your portfolios can decrease your overall portfolio volatility.
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