1CM INC (Germany) Volatility
| IQ70 Stock | 0.08 0.01 19.69% |
1CM INC is out of control given 3 months investment horizon. 1CM INC secures Sharpe Ratio (or Efficiency) of 0.0636, which signifies that the company had a 0.0636 % return per unit of price deviation over the last 3 months. We were able to analyze twenty-seven different technical indicators, which can help you to evaluate if expected returns of 1.25% are justified by taking the suggested risk. Use 1CM INC Mean Deviation of 10.26, coefficient of variation of 2377.66, and Standard Deviation of 19.05 to evaluate company specific risk that cannot be diversified away.
Sharpe Ratio = 0.0636
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Estimated Market Risk
| 19.62 actual daily | 96 96% of assets are less volatile |
Expected Return
| 1.25 actual daily | 25 75% of assets have higher returns |
Risk-Adjusted Return
| 0.06 actual daily | 5 95% of assets perform better |
Based on monthly moving average 1CM INC is performing at about 5% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of 1CM INC by adding it to a well-diversified portfolio.
Key indicators related to 1CM INC's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
1CM INC 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 1CM daily returns, and it is calculated using variance and standard deviation. We also use 1CM's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 1CM INC volatility.
1CM |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 1CM INC 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 1CM INC at lower prices to lower their average cost per share. Similarly, when the prices of 1CM INC's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to 1CM INC's market risk premium analysis include:
Beta (0.84) | Alpha 0.84 | Risk 19.62 | Sharpe Ratio 0.0636 | Expected Return 1.25 |
Moving together with 1CM Stock
Moving against 1CM Stock
| 0.62 | PAE | PACCAR | PairCorr |
| 0.58 | LOR | LOral SA | PairCorr |
| 0.58 | DG1 | DAWSON GEOPHYSICAL | PairCorr |
| 0.56 | WNI | WHITE MTNS INS | PairCorr |
| 0.56 | PYCP | Minera Alamos Split | PairCorr |
| 0.55 | SKNB | Skanska AB | PairCorr |
| 0.55 | ALV | Allianz SE | PairCorr |
| 0.52 | ASME | ASML Holding NV | PairCorr |
| 0.51 | S0V | Seaboard | PairCorr |
| 0.51 | SII | Wheaton Precious Metals | PairCorr |
1CM INC Market Sensitivity And Downside Risk
1CM INC's beta coefficient measures the volatility of 1CM 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 1CM stock's returns against your selected market. In other words, 1CM INC's beta of -0.84 provides an investor with an approximation of how much risk 1CM INC stock can potentially add to one of your existing portfolios. 1CM INC is showing large volatility of returns over the selected time horizon. 1CM INC is a penny stock. Although 1CM INC may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in 1CM INC. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on 1CM 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 1CM INC Demand TrendCheck current 90 days 1CM INC correlation with market (Dow Jones Industrial)1CM INC Volatility and Downside Risk
1CM 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.
1CM INC Stock Volatility Analysis
Volatility refers to the frequency at which 1CM INC stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 1CM INC's price changes. Investors will then calculate the volatility of 1CM INC'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 1CM INC's volatility:
Historical Volatility
This type of stock volatility measures 1CM INC's fluctuations based on previous trends. It's commonly used to predict 1CM INC'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 1CM INC'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 1CM INC'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. 1CM INC 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.
1CM INC Projected Return Density Against Market
Assuming the 90 days trading horizon 1CM INC has a beta of -0.8403 . This usually indicates as returns on the benchmark increase, returns on holding 1CM INC are expected to decrease at a much lower rate. During a bear market, however, 1CM INC 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 1CM INC or Pharmaceuticals 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 1CM INC'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 1CM 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.
Predicted Return Density |
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What Drives a 1CM INC 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.1CM INC Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of 1CM INC is 1571.6. The daily returns are distributed with a variance of 384.76 and standard deviation of 19.62. The mean deviation of 1CM INC is currently at 10.52. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.84 | |
β | Beta against Dow Jones | -0.84 | |
σ | Overall volatility | 19.62 | |
Ir | Information ratio | 0.04 |
1CM INC Stock Return Volatility
1CM INC historical daily return volatility represents how much of 1CM INC stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 19.6152% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7615% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between 1CM Stock performing well and 1CM INC Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze 1CM INC's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| PQ9 | 4.85 | 0.27 | 0.03 | 0.18 | 5.73 | 17.39 | 40.26 | |||
| PQ9 | 2.52 | 0.34 | 0.05 | 3.57 | 2.78 | 5.00 | 26.79 | |||
| PQ9 | 0.69 | 0.07 | 0.00 | 1.05 | 0.00 | 4.55 | 9.31 | |||
| PQ9 | 0.87 | 0.08 | 0.00 | 0.56 | 0.00 | 4.00 | 24.58 | |||
| BYRA | 1.29 | (0.22) | 0.00 | (0.39) | 0.00 | 5.00 | 35.71 | |||
| BYRA | 1.72 | 0.15 | 0.01 | (0.29) | 2.16 | 5.88 | 17.03 | |||
| BYRA | 4.14 | 0.38 | 0.04 | (0.35) | 4.34 | 11.11 | 26.67 | |||
| BYRA | 0.86 | (0.04) | 0.00 | 0.14 | 0.00 | 5.88 | 12.13 | |||
| BZG2 | 0.66 | (0.07) | 0.00 | 5.33 | 0.00 | 2.56 | 5.26 | |||
| BZG2 | 2.74 | (0.27) | 0.00 | 1.53 | 0.00 | 7.50 | 20.00 |
About 1CM INC Volatility
Volatility is a rate at which the price of 1CM INC 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 1CM INC may increase or decrease. In other words, similar to 1CM's beta indicator, it measures the risk of 1CM INC and helps estimate the fluctuations that may happen in a short period of time. So if prices of 1CM INC 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.3 ways to utilize 1CM INC's volatility to invest better
Higher 1CM INC's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of 1CM INC 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. 1CM INC 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 1CM INC investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in 1CM INC'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 1CM INC's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
1CM INC Investment Opportunity
1CM INC has a volatility of 19.62 and is 25.82 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of 1CM INC is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use 1CM INC to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of 1CM INC to be traded at 0.095 in 90 days.Excellent diversification
The correlation between 1CM INC and DJI is -0.58 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 1CM INC and DJI in the same portfolio, assuming nothing else is changed.
1CM INC Additional Risk Indicators
The analysis of 1CM INC'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 1CM INC's investment and either accepting that risk or mitigating it. Along with some common measures of 1CM INC 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 | 0.0435 | |||
| Market Risk Adjusted Performance | (0.93) | |||
| Mean Deviation | 10.26 | |||
| Semi Deviation | 12.71 | |||
| Downside Deviation | 17.83 | |||
| Coefficient Of Variation | 2377.66 | |||
| Standard Deviation | 19.05 |
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.
1CM INC 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 1CM INC 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. 1CM INC'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, 1CM INC'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 1CM INC.
Complementary Tools for 1CM Stock analysis
When running 1CM INC's price analysis, check to measure 1CM INC'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 1CM INC is operating at the current time. Most of 1CM INC's value examination focuses on studying past and present price action to predict the probability of 1CM INC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 1CM INC's price. Additionally, you may evaluate how the addition of 1CM INC to your portfolios can decrease your overall portfolio volatility.
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