GIMV NV (Belgium) Volatility
| GIMB Stock | EUR 40.85 2.10 5.42% |
Currently, GIMV NV is very steady. GIMV NV holds Efficiency (Sharpe) Ratio of 0.0275, which attests that the entity had a 0.0275% return per unit of risk over the last 3 months. We have found thirty technical indicators for GIMV NV, which you can use to evaluate the volatility of the firm. Please check out GIMV NV's Semi Deviation of 0.8727, risk adjusted performance of 0.0235, and Market Risk Adjusted Performance of 0.0664 to validate if the risk estimate we provide is consistent with the expected return of 0.0341%. Key indicators related to GIMV NV's volatility include:
660 Days Market Risk | Chance Of Distress | 660 Days Economic Sensitivity |
GIMV NV 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 GIMV daily returns, and it is calculated using variance and standard deviation. We also use GIMV's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of GIMV NV volatility.
GIMV |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as GIMV NV 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 GIMV NV at lower prices. For example, an investor can purchase GIMV 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 GIMV NV'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 together with GIMV Stock
| 0.75 | GBLB | Groep Brussel Lambert | PairCorr |
| 0.8 | SOF | Sofina Socit Anonyme | PairCorr |
| 0.75 | BREB | Brederode SA | PairCorr |
| 0.73 | COMB | Compagnie du Bois | PairCorr |
| 0.69 | TINC | TINC Comm VA | PairCorr |
| 0.78 | QFG | Quest For Growth | PairCorr |
Moving against GIMV Stock
GIMV NV Market Sensitivity And Downside Risk
GIMV NV's beta coefficient measures the volatility of GIMV 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 GIMV stock's returns against your selected market. In other words, GIMV NV's beta of 0.38 provides an investor with an approximation of how much risk GIMV NV stock can potentially add to one of your existing portfolios. GIMV NV has low volatility with Treynor Ratio of 0.06, Maximum Drawdown of 4.73 and kurtosis of 5.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GIMV NV'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 GIMV NV'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 GIMV NV Demand TrendCheck current 90 days GIMV NV correlation with market (Dow Jones Industrial)GIMV Beta |
GIMV 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 | 1.24 |
It is essential to understand the difference between upside risk (as represented by GIMV NV's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of GIMV NV's daily returns or price. Since the actual investment returns on holding a position in gimv 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 GIMV NV.
GIMV NV Stock Volatility Analysis
Volatility refers to the frequency at which GIMV NV stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with GIMV NV's price changes. Investors will then calculate the volatility of GIMV NV'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 GIMV NV's volatility:
Historical Volatility
This type of stock volatility measures GIMV NV's fluctuations based on previous trends. It's commonly used to predict GIMV NV'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 GIMV NV'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 GIMV NV'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. GIMV NV 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.
GIMV NV Projected Return Density Against Market
Assuming the 90 days trading horizon GIMV NV has a beta of 0.3839 . This usually indicates as returns on the market go up, GIMV NV average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding GIMV NV 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 GIMV NV or Financial Services 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 GIMV NV'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 GIMV 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.
GIMV NV has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a GIMV NV 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.GIMV NV Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of GIMV NV is 3639.71. The daily returns are distributed with a variance of 1.54 and standard deviation of 1.24. The mean deviation of GIMV NV is currently at 0.87. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.38 | |
σ | Overall volatility | 1.24 | |
Ir | Information ratio | -0.08 |
GIMV NV Stock Return Volatility
GIMV NV historical daily return volatility represents how much of GIMV NV stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 1.2399% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7762% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About GIMV NV Volatility
Volatility is a rate at which the price of GIMV NV 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 GIMV NV may increase or decrease. In other words, similar to GIMV's beta indicator, it measures the risk of GIMV NV and helps estimate the fluctuations that may happen in a short period of time. So if prices of GIMV NV 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.GIMV NV is a private equity and venture capital firm specializing in direct and fund of funds investments. GIMV NV was founded on February 25, 1980 and is based in Antwerp, Belgium with additional offices in Paris, France Hague, The Netherlands Frankfurt am Main, Germany London, United Kingdom Prague, Czech Republic Warsaw, Poland and Munich, Germany. GIMV operates under Financial Services classification in Belgium and is traded on Brussels Stock Exchange. It employs 91 people.
GIMV NV'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 GIMV Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much GIMV NV's price varies over time.
3 ways to utilize GIMV NV's volatility to invest better
Higher GIMV NV's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of GIMV NV 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. GIMV NV 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 GIMV NV investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in GIMV NV'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 GIMV NV's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
GIMV NV Investment Opportunity
GIMV NV has a volatility of 1.24 and is 1.59 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of GIMV NV is lower than 11 percent of all global equities and portfolios over the last 90 days. You can use GIMV NV to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of GIMV NV to be traded at €51.06 in 90 days.Modest diversification
The correlation between GIMV NV and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding GIMV NV and DJI in the same portfolio, assuming nothing else is changed.
GIMV NV Additional Risk Indicators
The analysis of GIMV NV'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 GIMV NV's investment and either accepting that risk or mitigating it. Along with some common measures of GIMV NV 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 | 0.0235 | |||
| Market Risk Adjusted Performance | 0.0664 | |||
| Mean Deviation | 0.8597 | |||
| Semi Deviation | 0.8727 | |||
| Downside Deviation | 0.9163 | |||
| Coefficient Of Variation | 3887.26 | |||
| Standard Deviation | 1.23 |
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.
GIMV NV 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 GIMV NV 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. GIMV NV'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, GIMV NV'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 GIMV NV.
Additional Tools for GIMV Stock Analysis
When running GIMV NV's price analysis, check to measure GIMV NV'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 GIMV NV is operating at the current time. Most of GIMV NV's value examination focuses on studying past and present price action to predict the probability of GIMV NV's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GIMV NV's price. Additionally, you may evaluate how the addition of GIMV NV to your portfolios can decrease your overall portfolio volatility.