FBC HOLDINGS (Zimbabwe) Volatility
| FBC Stock | 1,240 40.00 3.33% |
FBC HOLDINGS is very steady given 3 months investment horizon. FBC HOLDINGS LIMITED retains Efficiency (Sharpe Ratio) of 0.26, which denotes the company had a 0.26% return per unit of risk over the last 3 months. We were able to collect and analyze data for thirty different technical indicators, which can help you to evaluate if expected returns of 1.34% are justified by taking the suggested risk. Use FBC HOLDINGS LIMITED Market Risk Adjusted Performance of 1.4, coefficient of variation of 276.33, and Downside Deviation of 6.14 to evaluate company specific risk that cannot be diversified away.
FBC |
FBC HOLDINGS 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 FBC daily returns, and it is calculated using variance and standard deviation. We also use FBC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of FBC HOLDINGS volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of FBC HOLDINGS at lower prices. For example, an investor can purchase FBC 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.
FBC HOLDINGS Market Sensitivity And Downside Risk
FBC HOLDINGS's beta coefficient measures the volatility of FBC 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 FBC stock's returns against your selected market. In other words, FBC HOLDINGS's beta of 1.66 provides an investor with an approximation of how much risk FBC HOLDINGS stock can potentially add to one of your existing portfolios. FBC HOLDINGS LIMITED is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FBC HOLDINGS'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 FBC HOLDINGS'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 FBC HOLDINGS LIMITED Demand TrendCheck current 90 days FBC HOLDINGS correlation with market (Dow Jones Industrial)FBC Beta |
FBC 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 | 5.18 |
It is essential to understand the difference between upside risk (as represented by FBC HOLDINGS's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of FBC HOLDINGS's daily returns or price. Since the actual investment returns on holding a position in fbc 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 FBC HOLDINGS.
FBC HOLDINGS LIMITED Stock Volatility Analysis
Volatility refers to the frequency at which FBC HOLDINGS stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with FBC HOLDINGS's price changes. Investors will then calculate the volatility of FBC HOLDINGS'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 FBC HOLDINGS's volatility:
Historical Volatility
This type of stock volatility measures FBC HOLDINGS's fluctuations based on previous trends. It's commonly used to predict FBC HOLDINGS'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 FBC HOLDINGS'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 FBC HOLDINGS'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. FBC HOLDINGS LIMITED 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.
FBC HOLDINGS Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.6598 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, FBC HOLDINGS 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 FBC HOLDINGS or FBC 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 FBC HOLDINGS'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 FBC 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.
FBC HOLDINGS LIMITED has an alpha of 2.1065, implying that it can generate a 2.11 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a FBC HOLDINGS 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.FBC HOLDINGS Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of FBC HOLDINGS is 385.95. The daily returns are distributed with a variance of 26.83 and standard deviation of 5.18. The mean deviation of FBC HOLDINGS LIMITED is currently at 3.24. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 2.11 | |
β | Beta against Dow Jones | 1.66 | |
σ | Overall volatility | 5.18 | |
Ir | Information ratio | 0.34 |
FBC HOLDINGS Stock Return Volatility
FBC HOLDINGS historical daily return volatility represents how much of FBC HOLDINGS stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 5.1799% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
FBC HOLDINGS Investment Opportunity
FBC HOLDINGS LIMITED has a volatility of 5.18 and is 6.73 times more volatile than Dow Jones Industrial. 46 percent of all equities and portfolios are less risky than FBC HOLDINGS. You can use FBC HOLDINGS LIMITED to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of FBC HOLDINGS to be traded at 1488.0 in 90 days.Modest diversification
The correlation between FBC HOLDINGS LIMITED and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding FBC HOLDINGS LIMITED and DJI in the same portfolio, assuming nothing else is changed.
FBC HOLDINGS Additional Risk Indicators
The analysis of FBC HOLDINGS'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 FBC HOLDINGS's investment and either accepting that risk or mitigating it. Along with some common measures of FBC HOLDINGS 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 | 0.2863 | |||
| Market Risk Adjusted Performance | 1.4 | |||
| Mean Deviation | 4.7 | |||
| Semi Deviation | 2.84 | |||
| Downside Deviation | 6.14 | |||
| Coefficient Of Variation | 276.33 | |||
| Standard Deviation | 6.4 |
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.
FBC HOLDINGS 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 FBC HOLDINGS 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. FBC HOLDINGS'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, FBC HOLDINGS'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 FBC HOLDINGS LIMITED.
Complementary Tools for FBC Stock analysis
When running FBC HOLDINGS's price analysis, check to measure FBC HOLDINGS'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 FBC HOLDINGS is operating at the current time. Most of FBC HOLDINGS's value examination focuses on studying past and present price action to predict the probability of FBC HOLDINGS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FBC HOLDINGS's price. Additionally, you may evaluate how the addition of FBC HOLDINGS to your portfolios can decrease your overall portfolio volatility.
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