Embraer Sa Stock Volatility

Moving together with Embraer Stock

Moving against Embraer Stock

Embraer SA Market Sensitivity And Downside Risk

3 Months Beta |Analyze Embraer SA Demand TrendCheck current 90 days Embraer SA correlation with market (Dow Jones Industrial)

Embraer SA Volatility and Downside Risk

Using Embraer Put Option to Manage Risk

Embraer SA's PUT expiring on 2026-05-15

Embraer SA Stock Volatility Analysis

Embraer SA Projected Return Density Against Market

Given the investment horizon of 90 days Embraer SA has a beta of 0.6439 suggesting as returns on the market go up, Embraer SA average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Embraer SA will be expected to be much smaller as well. Embraer SA has an alpha of 0.0899, implying that it can generate a 0.0899 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Embraer SA's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how embraer stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Embraer SA 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.

Embraer SA Stock Risk Measures

Embraer SA Stock Return Volatility

Embraer SA historical daily return volatility represents how much of Embraer SA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.0075% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7533% volatility on return distribution over the 90 days horizon.

Related Correlations Analysis

Volatility is a rate at which the price of Embraer SA 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 Embraer SA may increase or decrease. In other words, similar to Embraer's beta indicator, it measures the risk of Embraer SA and helps estimate the fluctuations that may happen in a short period of time. So if prices of Embraer SA 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.

Embraer SA'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 Embraer Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Embraer SA's price varies over time.

The analysis of Embraer SA'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 Embraer SA's investment and either accepting that risk or mitigating it. Along with some common measures of Embraer SA 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.

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.

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 Embraer SA 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. Embraer SA'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, Embraer SA'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 Embraer SA.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Embraer SA. 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 labor statistics. For more information on how to buy Embraer Stock please use our How to buy in Embraer Stock guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Embraer SA's market price often diverges from its book value, the accounting figure shown on Embraer's balance sheet. Smart investors calculate Embraer SA's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. Since Embraer SA's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.

It's important to distinguish between Embraer SA's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Embraer SA should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Embraer SA's 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.