Icelandic Salmon (Iceland) Volatility
| ISLAX Stock | 1,560 40.00 2.63% |
Icelandic Salmon is very steady at the moment. Icelandic Salmon holds Efficiency (Sharpe) Ratio of 0.11, which attests that the entity had a 0.11% return per unit of risk over the last 3 months. We have found twenty-one technical indicators for Icelandic Salmon, which you can use to evaluate the volatility of the firm. Please check out Icelandic Salmon's Risk Adjusted Performance of 0.0868, market risk adjusted performance of (1.05), and Standard Deviation of 1.54 to validate if the risk estimate we provide is consistent with the expected return of 0.17%.
Icelandic |
Icelandic Salmon 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 Icelandic daily returns, and it is calculated using variance and standard deviation. We also use Icelandic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Icelandic Salmon volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Icelandic Salmon at lower prices. For example, an investor can purchase Icelandic 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 Icelandic Stock
Icelandic Salmon Market Sensitivity And Downside Risk
Icelandic Salmon's beta coefficient measures the volatility of Icelandic 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 Icelandic stock's returns against your selected market. In other words, Icelandic Salmon's beta of -0.15 provides an investor with an approximation of how much risk Icelandic Salmon stock can potentially add to one of your existing portfolios. Icelandic Salmon AS exhibits very low volatility with skewness of 1.49 and kurtosis of 9.95. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Icelandic Salmon'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 Icelandic Salmon'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 Icelandic Salmon Demand TrendCheck current 90 days Icelandic Salmon correlation with market (Dow Jones Industrial)Icelandic Beta |
Icelandic 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 | 1.55 |
It is essential to understand the difference between upside risk (as represented by Icelandic Salmon's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Icelandic Salmon's daily returns or price. Since the actual investment returns on holding a position in icelandic 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 Icelandic Salmon.
Icelandic Salmon Stock Volatility Analysis
Volatility refers to the frequency at which Icelandic Salmon stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Icelandic Salmon's price changes. Investors will then calculate the volatility of Icelandic Salmon'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 Icelandic Salmon's volatility:
Historical Volatility
This type of stock volatility measures Icelandic Salmon's fluctuations based on previous trends. It's commonly used to predict Icelandic Salmon'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 Icelandic Salmon'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 Icelandic Salmon'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. Icelandic Salmon 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.
Icelandic Salmon Projected Return Density Against Market
Assuming the 90 days trading horizon Icelandic Salmon AS has a beta of -0.1457 . This usually indicates as returns on the benchmark increase, returns on holding Icelandic Salmon are expected to decrease at a much lower rate. During a bear market, however, Icelandic Salmon AS 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 Icelandic Salmon or Icelandic 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 Icelandic Salmon'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 Icelandic 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.
Icelandic Salmon AS has an alpha of 0.1721, implying that it can generate a 0.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Icelandic Salmon 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.Icelandic Salmon Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Icelandic Salmon is 927.94. The daily returns are distributed with a variance of 2.41 and standard deviation of 1.55. The mean deviation of Icelandic Salmon AS is currently at 0.75. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | -0.15 | |
σ | Overall volatility | 1.55 | |
Ir | Information ratio | 0.02 |
Icelandic Salmon Stock Return Volatility
Icelandic Salmon historical daily return volatility represents how much of Icelandic Salmon stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.5529% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7736% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Icelandic Salmon Investment Opportunity
Icelandic Salmon AS has a volatility of 1.55 and is 2.01 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than Icelandic Salmon. You can use Icelandic Salmon AS to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Icelandic Salmon to be traded at 1872.0 in 90 days.Good diversification
The correlation between Icelandic Salmon AS and DJI is -0.07 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Icelandic Salmon AS and DJI in the same portfolio, assuming nothing else is changed.
Icelandic Salmon Additional Risk Indicators
The analysis of Icelandic Salmon'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 Icelandic Salmon's investment and either accepting that risk or mitigating it. Along with some common measures of Icelandic Salmon 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 | 0.0868 | |||
| Market Risk Adjusted Performance | (1.05) | |||
| Mean Deviation | 0.735 | |||
| Coefficient Of Variation | 935.03 | |||
| Standard Deviation | 1.54 | |||
| Variance | 2.37 | |||
| Information Ratio | 0.0235 |
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.
Icelandic Salmon 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 Icelandic Salmon 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. Icelandic Salmon'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, Icelandic Salmon'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 Icelandic Salmon AS.
Complementary Tools for Icelandic Stock analysis
When running Icelandic Salmon's price analysis, check to measure Icelandic Salmon'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 Icelandic Salmon is operating at the current time. Most of Icelandic Salmon's value examination focuses on studying past and present price action to predict the probability of Icelandic Salmon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Icelandic Salmon's price. Additionally, you may evaluate how the addition of Icelandic Salmon to your portfolios can decrease your overall portfolio volatility.
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