Desarrolladora Homex (Mexico) Volatility
| HOMEX Stock | MXN 0 0.00 0.00% |
We have found sixteen technical indicators for Desarrolladora Homex SAB, which you can use to evaluate the volatility of the firm. Please confirm Desarrolladora Homex's Mean Deviation of 1.49, standard deviation of 6.15, and Variance of 37.88 to check if the risk estimate we provide is consistent with the expected return of 0.0%. Key indicators related to Desarrolladora Homex's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Desarrolladora Homex 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 Desarrolladora daily returns, and it is calculated using variance and standard deviation. We also use Desarrolladora's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Desarrolladora Homex volatility.
Desarrolladora |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Desarrolladora Homex 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 Desarrolladora Homex at lower prices. For example, an investor can purchase Desarrolladora 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 Desarrolladora Homex'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 against Desarrolladora Stock
| 0.64 | DIS | Walt Disney Earnings Call This Week | PairCorr |
| 0.53 | MA | Mastercard Incorporated | PairCorr |
| 0.47 | INTU | Intuit Inc | PairCorr |
Desarrolladora Homex Market Sensitivity And Downside Risk
Desarrolladora Homex's beta coefficient measures the volatility of Desarrolladora 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 Desarrolladora stock's returns against your selected market. In other words, Desarrolladora Homex's beta of -0.66 provides an investor with an approximation of how much risk Desarrolladora Homex stock can potentially add to one of your existing portfolios. Desarrolladora Homex SAB is displaying above-average volatility over the selected time horizon. Desarrolladora Homex SAB is a penny stock. Even though Desarrolladora Homex 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 Desarrolladora Homex SAB 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 Desarrolladora 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 Desarrolladora Homex SAB Demand TrendCheck current 90 days Desarrolladora Homex correlation with market (Dow Jones Industrial)Desarrolladora Beta |
Desarrolladora 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 | 0.0 |
It is essential to understand the difference between upside risk (as represented by Desarrolladora Homex's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Desarrolladora Homex's daily returns or price. Since the actual investment returns on holding a position in desarrolladora 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 Desarrolladora Homex.
Desarrolladora Homex SAB Stock Volatility Analysis
Volatility refers to the frequency at which Desarrolladora Homex stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Desarrolladora Homex's price changes. Investors will then calculate the volatility of Desarrolladora Homex'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 Desarrolladora Homex's volatility:
Historical Volatility
This type of stock volatility measures Desarrolladora Homex's fluctuations based on previous trends. It's commonly used to predict Desarrolladora Homex'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 Desarrolladora Homex'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 Desarrolladora Homex'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. Desarrolladora Homex SAB 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.
Desarrolladora Homex Projected Return Density Against Market
Assuming the 90 days trading horizon Desarrolladora Homex SAB has a beta of -0.6627 . This usually indicates as returns on the benchmark increase, returns on holding Desarrolladora Homex are expected to decrease at a much lower rate. During a bear market, however, Desarrolladora Homex SAB 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 Desarrolladora Homex or Household Durables 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 Desarrolladora Homex'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 Desarrolladora 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.
Desarrolladora Homex SAB 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 Desarrolladora Homex 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.Desarrolladora Homex Stock Return Volatility
Desarrolladora Homex historical daily return volatility represents how much of Desarrolladora Homex stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 0.0% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8567% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Desarrolladora Homex Volatility
Volatility is a rate at which the price of Desarrolladora Homex 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 Desarrolladora Homex may increase or decrease. In other words, similar to Desarrolladora's beta indicator, it measures the risk of Desarrolladora Homex and helps estimate the fluctuations that may happen in a short period of time. So if prices of Desarrolladora Homex 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.Desarrolladora Homex, S.A.B. de C.V., develops homes in Mexico. The company was founded in 1989 and is headquartered in Culiacn, Mexico. DESARROLLADORA HOMEX operates under Residential Construction classification in Mexico and is traded on Mexico Stock Exchange. It employs 1378 people.
Desarrolladora Homex'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 Desarrolladora Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Desarrolladora Homex's price varies over time.
3 ways to utilize Desarrolladora Homex's volatility to invest better
Higher Desarrolladora Homex's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Desarrolladora Homex SAB 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. Desarrolladora Homex SAB 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 Desarrolladora Homex SAB investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Desarrolladora Homex'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 Desarrolladora Homex's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Desarrolladora Homex Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.86 and is 9.223372036854776E16 times more volatile than Desarrolladora Homex SAB. Compared to the overall equity markets, volatility of historical daily returns of Desarrolladora Homex SAB is lower than 0 percent of all global equities and portfolios over the last 90 days. You can use Desarrolladora Homex SAB to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Desarrolladora Homex to be traded at 0.001 in 90 days.Good diversification
The correlation between Desarrolladora Homex SAB and DJI is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Desarrolladora Homex SAB and DJI in the same portfolio, assuming nothing else is changed.
Desarrolladora Homex Additional Risk Indicators
The analysis of Desarrolladora Homex'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 Desarrolladora Homex's investment and either accepting that risk or mitigating it. Along with some common measures of Desarrolladora Homex 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 | (0.09) | |||
| Market Risk Adjusted Performance | 1.17 | |||
| Mean Deviation | 1.49 | |||
| Coefficient Of Variation | (812.40) | |||
| Standard Deviation | 6.15 | |||
| Variance | 37.88 | |||
| Information Ratio | (0.14) |
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.
Desarrolladora Homex 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 Desarrolladora Homex 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. Desarrolladora Homex'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, Desarrolladora Homex'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 Desarrolladora Homex SAB.
Other Information on Investing in Desarrolladora Stock
Desarrolladora Homex financial ratios help investors to determine whether Desarrolladora Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Desarrolladora with respect to the benefits of owning Desarrolladora Homex security.