HKFoods Oyj (Finland) Volatility
| HKFOODS Stock | 0.80 0.02 2.44% |
HKFoods Oyj appears to be extremely dangerous, given 3 months investment horizon. HKFoods Oyj A holds Efficiency (Sharpe) Ratio of 0.13, which attests that the entity had a 0.13% return per unit of return volatility over the last 3 months. We have found thirty technical indicators for HKFoods Oyj A, which you can use to evaluate the volatility of the firm. Please utilize HKFoods Oyj's Market Risk Adjusted Performance of (1.15), risk adjusted performance of 0.104, and Semi Deviation of 1.58 to validate if our risk estimates are consistent with your expectations.
HKFoods |
HKFoods Oyj 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 HKFoods daily returns, and it is calculated using variance and standard deviation. We also use HKFoods's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of HKFoods Oyj volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as HKFoods Oyj 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 HKFoods Oyj at lower prices. For example, an investor can purchase HKFoods 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 HKFoods Oyj'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 HKFoods Stock
Moving against HKFoods Stock
| 0.79 | UPM | UPM Kymmene Oyj | PairCorr |
| 0.73 | NESTE | Neste Oil Oyj | PairCorr |
| 0.67 | STERV | Stora Enso Oyj | PairCorr |
| 0.65 | STEAV | Stora Enso Oyj | PairCorr |
| 0.37 | SAMPO | Sampo Oyj A | PairCorr |
HKFoods Oyj Market Sensitivity And Downside Risk
HKFoods Oyj's beta coefficient measures the volatility of HKFoods 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 HKFoods stock's returns against your selected market. In other words, HKFoods Oyj's beta of -0.37 provides an investor with an approximation of how much risk HKFoods Oyj stock can potentially add to one of your existing portfolios. HKFoods Oyj A currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.48. HKFoods Oyj A is a potential penny stock. Although HKFoods Oyj may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in HKFoods Oyj A. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on HKFoods 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 HKFoods Oyj A Demand TrendCheck current 90 days HKFoods Oyj correlation with market (Dow Jones Industrial)HKFoods Beta |
HKFoods 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 | 3.56 |
It is essential to understand the difference between upside risk (as represented by HKFoods Oyj's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of HKFoods Oyj's daily returns or price. Since the actual investment returns on holding a position in hkfoods 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 HKFoods Oyj.
HKFoods Oyj A Stock Volatility Analysis
Volatility refers to the frequency at which HKFoods Oyj stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with HKFoods Oyj's price changes. Investors will then calculate the volatility of HKFoods Oyj'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 HKFoods Oyj's volatility:
Historical Volatility
This type of stock volatility measures HKFoods Oyj's fluctuations based on previous trends. It's commonly used to predict HKFoods Oyj'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 HKFoods Oyj'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 HKFoods Oyj'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. HKFoods Oyj A 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.
HKFoods Oyj Projected Return Density Against Market
Assuming the 90 days trading horizon HKFoods Oyj A has a beta of -0.3734 . This usually indicates as returns on the benchmark increase, returns on holding HKFoods Oyj are expected to decrease at a much lower rate. During a bear market, however, HKFoods Oyj A is likely to outperform the market.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 HKFoods Oyj or Natural Foods 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 HKFoods Oyj'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 HKFoods 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.
HKFoods Oyj A has an alpha of 0.4792, implying that it can generate a 0.48 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a HKFoods Oyj 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.HKFoods Oyj Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of HKFoods Oyj is 748.63. The daily returns are distributed with a variance of 12.68 and standard deviation of 3.56. The mean deviation of HKFoods Oyj A is currently at 1.91. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.48 | |
β | Beta against Dow Jones | -0.37 | |
σ | Overall volatility | 3.56 | |
Ir | Information ratio | 0.09 |
HKFoods Oyj Stock Return Volatility
HKFoods Oyj historical daily return volatility represents how much of HKFoods Oyj stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 3.5614% 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 |
HKFoods Oyj Investment Opportunity
HKFoods Oyj A has a volatility of 3.56 and is 4.62 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of HKFoods Oyj A is lower than 31 percent of all global equities and portfolios over the last 90 days. You can use HKFoods Oyj A to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of HKFoods Oyj to be traded at 0.768 in 90 days.Good diversification
The correlation between HKFoods Oyj A and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HKFoods Oyj A and DJI in the same portfolio, assuming nothing else is changed.
HKFoods Oyj Additional Risk Indicators
The analysis of HKFoods Oyj'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 HKFoods Oyj's investment and either accepting that risk or mitigating it. Along with some common measures of HKFoods Oyj 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 | 0.104 | |||
| Market Risk Adjusted Performance | (1.15) | |||
| Mean Deviation | 1.9 | |||
| Semi Deviation | 1.58 | |||
| Downside Deviation | 2.94 | |||
| Coefficient Of Variation | 797.89 | |||
| Standard Deviation | 3.54 |
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.
HKFoods Oyj 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 HKFoods Oyj 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. HKFoods Oyj'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, HKFoods Oyj'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 HKFoods Oyj A.
Additional Tools for HKFoods Stock Analysis
When running HKFoods Oyj's price analysis, check to measure HKFoods Oyj'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 HKFoods Oyj is operating at the current time. Most of HKFoods Oyj's value examination focuses on studying past and present price action to predict the probability of HKFoods Oyj's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HKFoods Oyj's price. Additionally, you may evaluate how the addition of HKFoods Oyj to your portfolios can decrease your overall portfolio volatility.