CHINA FORTUNE (Germany) Volatility
| FTQ0 Stock | EUR 0.01 0.0005 5.56% |
CHINA FORTUNE is out of control given 3 months investment horizon. CHINA FORTUNE HLDGHD001 secures Sharpe Ratio (or Efficiency) of 0.0693, which signifies that the company had a 0.0693% return per unit of return volatility over the last 3 months. We were able to break down and collect data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 2.4% are justified by taking the suggested risk. Use CHINA FORTUNE Semi Deviation of 15.68, risk adjusted performance of 0.069, and Mean Deviation of 14.29 to evaluate company specific risk that cannot be diversified away. Key indicators related to CHINA FORTUNE's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
CHINA FORTUNE 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 CHINA daily returns, and it is calculated using variance and standard deviation. We also use CHINA's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CHINA FORTUNE volatility.
CHINA |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CHINA FORTUNE 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 CHINA FORTUNE at lower prices to lower their average cost per share. Similarly, when the prices of CHINA FORTUNE's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with CHINA Stock
Moving against CHINA Stock
| 0.74 | 3CP | Xiaomi | PairCorr |
| 0.73 | GIS | General Mills | PairCorr |
| 0.72 | SK3 | Smurfit Kappa Group | PairCorr |
| 0.62 | MIE1 | Mitsubishi Electric | PairCorr |
| 0.6 | MAT1 | Panasonic Corp | PairCorr |
| 0.58 | C6TB | CHINA BANK ADR20 | PairCorr |
| 0.58 | ICKB | INDCOMMBK CHINA ADR20 | PairCorr |
| 0.57 | 5EE | MEBUKI FINANCIAL | PairCorr |
| 0.54 | ICK | Industrial and Commercial | PairCorr |
CHINA FORTUNE Market Sensitivity And Downside Risk
CHINA FORTUNE's beta coefficient measures the volatility of CHINA 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 CHINA stock's returns against your selected market. In other words, CHINA FORTUNE's beta of 2.82 provides an investor with an approximation of how much risk CHINA FORTUNE stock can potentially add to one of your existing portfolios. CHINA FORTUNE HLDGHD001 is showing large volatility of returns over the selected time horizon. CHINA FORTUNE HLDGHD001 is a penny stock. Even though CHINA FORTUNE may be a good instrument to invest, many penny stocks are speculative instruments that are subject to artificial stock promotions. Please make sure you fully understand upside and downside scenarios of investing in CHINA FORTUNE HLDGHD001 or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings,sudden promotions and many other similar artificial hype indicators. We also encourage traders to check work history of company executives before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on CHINA instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze CHINA FORTUNE HLDGHD001 Demand TrendCheck current 90 days CHINA FORTUNE correlation with market (Dow Jones Industrial)CHINA Beta |
CHINA 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 | 34.59 |
It is essential to understand the difference between upside risk (as represented by CHINA FORTUNE's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CHINA FORTUNE's daily returns or price. Since the actual investment returns on holding a position in china 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 CHINA FORTUNE.
CHINA FORTUNE HLDGHD001 Stock Volatility Analysis
Volatility refers to the frequency at which CHINA FORTUNE stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CHINA FORTUNE's price changes. Investors will then calculate the volatility of CHINA FORTUNE'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 CHINA FORTUNE's volatility:
Historical Volatility
This type of stock volatility measures CHINA FORTUNE's fluctuations based on previous trends. It's commonly used to predict CHINA FORTUNE'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 CHINA FORTUNE'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 CHINA FORTUNE'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. CHINA FORTUNE HLDGHD001 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.
CHINA FORTUNE Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 2.8247 . 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, CHINA FORTUNE 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 CHINA FORTUNE or Technology 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 CHINA FORTUNE'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 CHINA 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.
CHINA FORTUNE HLDGHD001 has an alpha of 2.3213, implying that it can generate a 2.32 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CHINA FORTUNE 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.CHINA FORTUNE Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of CHINA FORTUNE is 1442.63. The daily returns are distributed with a variance of 1196.64 and standard deviation of 34.59. The mean deviation of CHINA FORTUNE HLDGHD001 is currently at 14.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 2.32 | |
β | Beta against Dow Jones | 2.82 | |
σ | Overall volatility | 34.59 | |
Ir | Information ratio | 0.07 |
CHINA FORTUNE Stock Return Volatility
CHINA FORTUNE historical daily return volatility represents how much of CHINA FORTUNE stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 34.5925% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CHINA FORTUNE Volatility
Volatility is a rate at which the price of CHINA FORTUNE 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 CHINA FORTUNE may increase or decrease. In other words, similar to CHINA's beta indicator, it measures the risk of CHINA FORTUNE and helps estimate the fluctuations that may happen in a short period of time. So if prices of CHINA FORTUNE 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.China Fortune Holdings Limited, an investment holding company, engages in the distribution and trading of mobile phones and related accessories in the Peoples Republic of China. China Fortune Holdings Limited is a subsidiary of Future 2000 Limited. CHINA FORTUNE operates under Consumer Electronics classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15 people.
CHINA FORTUNE'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 CHINA Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CHINA FORTUNE's price varies over time.
3 ways to utilize CHINA FORTUNE's volatility to invest better
Higher CHINA FORTUNE's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CHINA FORTUNE HLDGHD001 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. CHINA FORTUNE HLDGHD001 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 CHINA FORTUNE HLDGHD001 investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CHINA FORTUNE'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 CHINA FORTUNE's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CHINA FORTUNE Investment Opportunity
CHINA FORTUNE HLDGHD001 has a volatility of 34.59 and is 44.35 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of CHINA FORTUNE HLDGHD001 is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use CHINA FORTUNE HLDGHD001 to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of CHINA FORTUNE to be traded at €0.0081 in 90 days.Significant diversification
The correlation between CHINA FORTUNE HLDGHD001 and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CHINA FORTUNE HLDGHD001 and DJI in the same portfolio, assuming nothing else is changed.
CHINA FORTUNE Additional Risk Indicators
The analysis of CHINA FORTUNE'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 CHINA FORTUNE's investment and either accepting that risk or mitigating it. Along with some common measures of CHINA FORTUNE 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 | 0.069 | |||
| Market Risk Adjusted Performance | 0.9472 | |||
| Mean Deviation | 14.29 | |||
| Semi Deviation | 15.68 | |||
| Downside Deviation | 29.63 | |||
| Coefficient Of Variation | 1294.22 | |||
| Standard Deviation | 34.39 |
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.
CHINA FORTUNE 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 CHINA FORTUNE 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. CHINA FORTUNE'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, CHINA FORTUNE'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 CHINA FORTUNE HLDGHD001.
Complementary Tools for CHINA Stock analysis
When running CHINA FORTUNE's price analysis, check to measure CHINA FORTUNE'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 CHINA FORTUNE is operating at the current time. Most of CHINA FORTUNE's value examination focuses on studying past and present price action to predict the probability of CHINA FORTUNE's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CHINA FORTUNE's price. Additionally, you may evaluate how the addition of CHINA FORTUNE to your portfolios can decrease your overall portfolio volatility.
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