IND+COMMBK CHINA (Germany) Volatility
| ICKB Stock | EUR 11.00 0.10 0.92% |
At this point, IND+COMMBK CHINA is somewhat reliable. INDCOMMBK CHINA ADR20 holds Efficiency (Sharpe) Ratio of 0.0346, which attests that the entity had a 0.0346% return per unit of return volatility over the last 3 months. We have found twenty-eight technical indicators for INDCOMMBK CHINA ADR20, which you can use to evaluate the volatility of the firm. Please check out IND+COMMBK CHINA's Semi Deviation of 1.86, market risk adjusted performance of (0.22), and Risk Adjusted Performance of 0.0333 to validate if the risk estimate we provide is consistent with the expected return of 0.0914%. Key indicators related to IND+COMMBK CHINA's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
IND+COMMBK CHINA 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 IND+COMMBK daily returns, and it is calculated using variance and standard deviation. We also use IND+COMMBK's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of IND+COMMBK CHINA volatility.
IND+COMMBK |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as IND+COMMBK CHINA 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 IND+COMMBK CHINA at lower prices to lower their average cost per share. Similarly, when the prices of IND+COMMBK CHINA's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with IND+COMMBK Stock
| 0.93 | ICK | Industrial and Commercial | PairCorr |
| 0.95 | C6TB | CHINA BANK ADR20 | PairCorr |
| 0.89 | EK7A | AGRICULTBK HADR/25 | PairCorr |
| 0.87 | W8VS | BANK OCHINA H | PairCorr |
| 0.8 | BZZ | Bank of Montreal | PairCorr |
Moving against IND+COMMBK Stock
IND+COMMBK CHINA Market Sensitivity And Downside Risk
IND+COMMBK CHINA's beta coefficient measures the volatility of IND+COMMBK 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 IND+COMMBK stock's returns against your selected market. In other words, IND+COMMBK CHINA's beta of -0.34 provides an investor with an approximation of how much risk IND+COMMBK CHINA stock can potentially add to one of your existing portfolios. INDCOMMBK CHINA ADR20 currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure IND+COMMBK CHINA'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 IND+COMMBK CHINA'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 INDCOMMBK CHINA ADR20 Demand TrendCheck current 90 days IND+COMMBK CHINA correlation with market (Dow Jones Industrial)IND+COMMBK Beta |
IND+COMMBK 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 | 2.64 |
It is essential to understand the difference between upside risk (as represented by IND+COMMBK CHINA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of IND+COMMBK CHINA's daily returns or price. Since the actual investment returns on holding a position in ind+commbk 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 IND+COMMBK CHINA.
INDCOMMBK CHINA ADR20 Stock Volatility Analysis
Volatility refers to the frequency at which IND+COMMBK CHINA stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with IND+COMMBK CHINA's price changes. Investors will then calculate the volatility of IND+COMMBK CHINA'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 IND+COMMBK CHINA's volatility:
Historical Volatility
This type of stock volatility measures IND+COMMBK CHINA's fluctuations based on previous trends. It's commonly used to predict IND+COMMBK CHINA'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 IND+COMMBK CHINA'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 IND+COMMBK CHINA'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. INDCOMMBK CHINA ADR20 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.
IND+COMMBK CHINA Projected Return Density Against Market
Assuming the 90 days trading horizon INDCOMMBK CHINA ADR20 has a beta of -0.3436 . This usually indicates as returns on the benchmark increase, returns on holding IND+COMMBK CHINA are expected to decrease at a much lower rate. During a bear market, however, INDCOMMBK CHINA ADR20 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 IND+COMMBK CHINA 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 IND+COMMBK CHINA'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 IND+COMMBK 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.
INDCOMMBK CHINA ADR20 has an alpha of 0.1209, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an IND+COMMBK CHINA 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.IND+COMMBK CHINA Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of IND+COMMBK CHINA is 2891.16. The daily returns are distributed with a variance of 6.98 and standard deviation of 2.64. The mean deviation of INDCOMMBK CHINA ADR20 is currently at 1.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | -0.34 | |
σ | Overall volatility | 2.64 | |
Ir | Information ratio | -0.02 |
IND+COMMBK CHINA Stock Return Volatility
IND+COMMBK CHINA historical daily return volatility represents how much of IND+COMMBK CHINA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 2.6411% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About IND+COMMBK CHINA Volatility
Volatility is a rate at which the price of IND+COMMBK CHINA 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 IND+COMMBK CHINA may increase or decrease. In other words, similar to IND+COMMBK's beta indicator, it measures the risk of IND+COMMBK CHINA and helps estimate the fluctuations that may happen in a short period of time. So if prices of IND+COMMBK CHINA 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.Industrial and Commercial Bank of China Limited provides various banking products and services in China and internationally. Industrial and Commercial Bank of China Limited was founded in 1984 and is headquartered in Beijing, the Peoples Republic of China. IND COMM operates under BanksDiversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 439787 people.
IND+COMMBK CHINA'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 IND+COMMBK Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much IND+COMMBK CHINA's price varies over time.
3 ways to utilize IND+COMMBK CHINA's volatility to invest better
Higher IND+COMMBK CHINA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of INDCOMMBK CHINA ADR20 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. INDCOMMBK CHINA ADR20 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 INDCOMMBK CHINA ADR20 investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in IND+COMMBK CHINA'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 IND+COMMBK CHINA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
IND+COMMBK CHINA Investment Opportunity
INDCOMMBK CHINA ADR20 has a volatility of 2.64 and is 3.38 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of INDCOMMBK CHINA ADR20 is lower than 23 percent of all global equities and portfolios over the last 90 days. You can use INDCOMMBK CHINA ADR20 to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of IND+COMMBK CHINA to be traded at €12.1 in 90 days.Good diversification
The correlation between INDCOMMBK CHINA ADR20 and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding INDCOMMBK CHINA ADR20 and DJI in the same portfolio, assuming nothing else is changed.
IND+COMMBK CHINA Additional Risk Indicators
The analysis of IND+COMMBK CHINA'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 IND+COMMBK CHINA's investment and either accepting that risk or mitigating it. Along with some common measures of IND+COMMBK CHINA 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 | 0.0333 | |||
| Market Risk Adjusted Performance | (0.22) | |||
| Mean Deviation | 1.76 | |||
| Semi Deviation | 1.86 | |||
| Downside Deviation | 2.19 | |||
| Coefficient Of Variation | 2921.05 | |||
| Standard Deviation | 2.61 |
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.
IND+COMMBK CHINA 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 IND+COMMBK CHINA 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. IND+COMMBK CHINA'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, IND+COMMBK CHINA'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 INDCOMMBK CHINA ADR20.
Complementary Tools for IND+COMMBK Stock analysis
When running IND+COMMBK CHINA's price analysis, check to measure IND+COMMBK CHINA'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 IND+COMMBK CHINA is operating at the current time. Most of IND+COMMBK CHINA's value examination focuses on studying past and present price action to predict the probability of IND+COMMBK CHINA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move IND+COMMBK CHINA's price. Additionally, you may evaluate how the addition of IND+COMMBK CHINA to your portfolios can decrease your overall portfolio volatility.
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