Grupa HRC (Poland) Volatility
| HRC Stock | 0.84 0.07 9.09% |
Grupa HRC SA holds Efficiency (Sharpe) Ratio of -0.0802, which attests that the entity had a -0.0802% return per unit of risk over the last 3 months. Grupa HRC SA exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Grupa HRC's Market Risk Adjusted Performance of (0.75), risk adjusted performance of (0.09), and Standard Deviation of 5.26 to validate the risk estimate we provide.
Grupa |
Grupa HRC 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 Grupa daily returns, and it is calculated using variance and standard deviation. We also use Grupa's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Grupa HRC volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Grupa HRC 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 Grupa HRC at lower prices. For example, an investor can purchase Grupa 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 Grupa HRC'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 Grupa Stock
Moving against Grupa Stock
| 0.75 | CEZ | CEZ as | PairCorr |
| 0.72 | DNP | Dino Polska SA | PairCorr |
| 0.65 | UCG | UniCredit SpA | PairCorr |
| 0.49 | SAN | Banco Santander SA | PairCorr |
Grupa HRC Market Sensitivity And Downside Risk
Grupa HRC's beta coefficient measures the volatility of Grupa 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 Grupa stock's returns against your selected market. In other words, Grupa HRC's beta of 0.87 provides an investor with an approximation of how much risk Grupa HRC stock can potentially add to one of your existing portfolios. Grupa HRC SA exhibits very low volatility with skewness of -0.03 and kurtosis of 0.03. Grupa HRC SA is a potential penny stock. Although Grupa HRC 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 Grupa HRC SA. 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 Grupa 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 Grupa HRC SA Demand TrendCheck current 90 days Grupa HRC correlation with market (Dow Jones Industrial)Grupa Beta |
Grupa 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 | 4.91 |
It is essential to understand the difference between upside risk (as represented by Grupa HRC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Grupa HRC's daily returns or price. Since the actual investment returns on holding a position in grupa 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 Grupa HRC.
Grupa HRC SA Stock Volatility Analysis
Volatility refers to the frequency at which Grupa HRC stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Grupa HRC's price changes. Investors will then calculate the volatility of Grupa HRC'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 Grupa HRC's volatility:
Historical Volatility
This type of stock volatility measures Grupa HRC's fluctuations based on previous trends. It's commonly used to predict Grupa HRC'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 Grupa HRC'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 Grupa HRC'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. Grupa HRC SA 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.
Grupa HRC Projected Return Density Against Market
Assuming the 90 days trading horizon Grupa HRC has a beta of 0.8687 . This usually indicates Grupa HRC SA market returns are sensible to returns on the market. As the market goes up or down, Grupa HRC is expected to follow.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 Grupa HRC or Grupa 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 Grupa HRC'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 Grupa 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.
Grupa HRC SA 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 Grupa HRC 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.Grupa HRC Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Grupa HRC is -1247.13. The daily returns are distributed with a variance of 24.13 and standard deviation of 4.91. The mean deviation of Grupa HRC SA is currently at 3.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.78 | |
β | Beta against Dow Jones | 0.87 | |
σ | Overall volatility | 4.91 | |
Ir | Information ratio | -0.15 |
Grupa HRC Stock Return Volatility
Grupa HRC historical daily return volatility represents how much of Grupa HRC stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 4.9118% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Grupa HRC Investment Opportunity
Grupa HRC SA has a volatility of 4.91 and is 6.55 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Grupa HRC SA is lower than 43 percent of all global equities and portfolios over the last 90 days. You can use Grupa HRC SA to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Grupa HRC to be traded at 1.05 in 90 days.Average diversification
The correlation between Grupa HRC SA and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Grupa HRC SA and DJI in the same portfolio, assuming nothing else is changed.
Grupa HRC Additional Risk Indicators
The analysis of Grupa HRC'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 Grupa HRC's investment and either accepting that risk or mitigating it. Along with some common measures of Grupa HRC 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 | (0.75) | |||
| Mean Deviation | 3.79 | |||
| Coefficient Of Variation | (804.06) | |||
| Standard Deviation | 5.26 | |||
| Variance | 27.69 | |||
| Information Ratio | (0.15) |
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.
Grupa HRC 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.
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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 Grupa HRC 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. Grupa HRC'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, Grupa HRC'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 Grupa HRC SA.
Additional Tools for Grupa Stock Analysis
When running Grupa HRC's price analysis, check to measure Grupa HRC'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 Grupa HRC is operating at the current time. Most of Grupa HRC's value examination focuses on studying past and present price action to predict the probability of Grupa HRC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Grupa HRC's price. Additionally, you may evaluate how the addition of Grupa HRC to your portfolios can decrease your overall portfolio volatility.