Indie Semiconductor Stock Volatility
| INDI Stock | USD 4.65 0.10 2.20% |
Indie Semiconductor appears to be dangerous, given 3 months investment horizon. indie Semiconductor holds Efficiency (Sharpe) Ratio of 0.0523, which attests that the entity had a 0.0523% return per unit of risk over the last 3 months. We have found thirty technical indicators for indie Semiconductor, which you can use to evaluate the volatility of the firm. Please utilize Indie Semiconductor's Risk Adjusted Performance of 0.0469, downside deviation of 4.57, and Market Risk Adjusted Performance of 0.146 to validate if our risk estimates are consistent with your expectations. Key indicators related to Indie Semiconductor's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Indie Semiconductor 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 Indie daily returns, and it is calculated using variance and standard deviation. We also use Indie's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Indie Semiconductor volatility.
Indie |
ESG Sustainability
While most ESG disclosures are voluntary, Indie Semiconductor's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Indie Semiconductor's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Indie Semiconductor at lower prices. For example, an investor can purchase Indie stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Indie Stock
Moving against Indie Stock
Indie Semiconductor Market Sensitivity And Downside Risk
Indie Semiconductor's beta coefficient measures the volatility of Indie 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 Indie stock's returns against your selected market. In other words, Indie Semiconductor's beta of 3.13 provides an investor with an approximation of how much risk Indie Semiconductor stock can potentially add to one of your existing portfolios. indie Semiconductor is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Indie Semiconductor'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 Indie Semiconductor'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 indie Semiconductor Demand TrendCheck current 90 days Indie Semiconductor correlation with market (Dow Jones Industrial)Indie Beta |
Indie 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 | 8.9 |
It is essential to understand the difference between upside risk (as represented by Indie Semiconductor's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Indie Semiconductor's daily returns or price. Since the actual investment returns on holding a position in indie 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 Indie Semiconductor.
indie Semiconductor Stock Volatility Analysis
Volatility refers to the frequency at which Indie Semiconductor stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Indie Semiconductor's price changes. Investors will then calculate the volatility of Indie Semiconductor'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 Indie Semiconductor's volatility:
Historical Volatility
This type of stock volatility measures Indie Semiconductor's fluctuations based on previous trends. It's commonly used to predict Indie Semiconductor'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 Indie Semiconductor'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 Indie Semiconductor'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. indie Semiconductor 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.
Indie Semiconductor Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 3.1284 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Indie Semiconductor will likely underperform.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 Indie Semiconductor or Semiconductors & Semiconductor Equipment 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 Indie Semiconductor'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 Indie 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.
Indie Semiconductor has an alpha of 0.1144, implying that it can generate a 0.11 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Indie Semiconductor 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.Indie Semiconductor Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Indie Semiconductor is 1913.83. The daily returns are distributed with a variance of 79.27 and standard deviation of 8.9. The mean deviation of indie Semiconductor is currently at 4.67. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.11 | |
β | Beta against Dow Jones | 3.13 | |
σ | Overall volatility | 8.90 | |
Ir | Information ratio | 0.04 |
Indie Semiconductor Stock Return Volatility
Indie Semiconductor historical daily return volatility represents how much of Indie Semiconductor stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 8.9035% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Indie Semiconductor Volatility
Volatility is a rate at which the price of Indie Semiconductor 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 Indie Semiconductor may increase or decrease. In other words, similar to Indie's beta indicator, it measures the risk of Indie Semiconductor and helps estimate the fluctuations that may happen in a short period of time. So if prices of Indie Semiconductor 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 1.2 B | 1.2 B |
Indie Semiconductor'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 Indie Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Indie Semiconductor's price varies over time.
3 ways to utilize Indie Semiconductor's volatility to invest better
Higher Indie Semiconductor's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of indie Semiconductor 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. indie Semiconductor 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 indie Semiconductor investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Indie Semiconductor'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 Indie Semiconductor's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Indie Semiconductor Investment Opportunity
indie Semiconductor has a volatility of 8.9 and is 11.71 times more volatile than Dow Jones Industrial. 79 percent of all equities and portfolios are less risky than Indie Semiconductor. You can use indie Semiconductor to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Indie Semiconductor to be traded at $5.58 in 90 days.Modest diversification
The correlation between indie Semiconductor and DJI is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding indie Semiconductor and DJI in the same portfolio, assuming nothing else is changed.
Indie Semiconductor Additional Risk Indicators
The analysis of Indie Semiconductor'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 Indie Semiconductor's investment and either accepting that risk or mitigating it. Along with some common measures of Indie Semiconductor 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 | 0.0469 | |||
| Market Risk Adjusted Performance | 0.146 | |||
| Mean Deviation | 4.64 | |||
| Semi Deviation | 4.18 | |||
| Downside Deviation | 4.57 | |||
| Coefficient Of Variation | 2018.7 | |||
| Standard Deviation | 8.79 |
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.
Indie Semiconductor 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 Indie Semiconductor 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. Indie Semiconductor'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, Indie Semiconductor'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 indie Semiconductor.
Complementary Tools for Indie Stock analysis
When running Indie Semiconductor's price analysis, check to measure Indie Semiconductor'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 Indie Semiconductor is operating at the current time. Most of Indie Semiconductor's value examination focuses on studying past and present price action to predict the probability of Indie Semiconductor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Indie Semiconductor's price. Additionally, you may evaluate how the addition of Indie Semiconductor to your portfolios can decrease your overall portfolio volatility.
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