Investcorp India Acquisition Stock Volatility
| IVCAU Stock | USD 11.84 0.06 0.50% |
Currently, Investcorp India Acquisition is very steady. Investcorp India Acq holds Efficiency (Sharpe) Ratio of 0.067, which attests that the entity had a 0.067 % return per unit of risk over the last 3 months. We have found twenty-two technical indicators for Investcorp India Acq, which you can use to evaluate the volatility of the firm. Please check out Investcorp India's Risk Adjusted Performance of 0.0579, market risk adjusted performance of (0.42), and Standard Deviation of 0.5121 to validate if the risk estimate we provide is consistent with the expected return of 0.0361%. Key indicators related to Investcorp India's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Investcorp India 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 Investcorp daily returns, and it is calculated using variance and standard deviation. We also use Investcorp's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Investcorp India volatility.
Investcorp |
ESG Sustainability
While most ESG disclosures are voluntary, Investcorp India's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Investcorp India's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Investcorp India 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 Investcorp India at lower prices. For example, an investor can purchase Investcorp 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 Investcorp India'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 against Investcorp Stock
| 0.73 | WD | Walker Dunlop | PairCorr |
| 0.6 | IVZ | Invesco Plc Fiscal Year End 28th of January 2025 | PairCorr |
| 0.54 | RKT | Rocket Companies | PairCorr |
| 0.42 | BEN | Franklin Resources Earnings Call This Week | PairCorr |
| 0.42 | UWMC | UWM Holdings Corp | PairCorr |
| 0.4 | DHIL | Diamond Hill Investment | PairCorr |
Investcorp India Market Sensitivity And Downside Risk
Investcorp India's beta coefficient measures the volatility of Investcorp 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 Investcorp stock's returns against your selected market. In other words, Investcorp India's beta of -0.0672 provides an investor with an approximation of how much risk Investcorp India stock can potentially add to one of your existing portfolios. Investcorp India Acquisition exhibits very low volatility with skewness of 2.77 and kurtosis of 25.82. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Investcorp India'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 Investcorp India'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 Investcorp India Acq Demand TrendCheck current 90 days Investcorp India correlation with market (Dow Jones Industrial)Investcorp Beta |
Investcorp 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 | 0.54 |
It is essential to understand the difference between upside risk (as represented by Investcorp India's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Investcorp India's daily returns or price. Since the actual investment returns on holding a position in investcorp 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 Investcorp India.
Investcorp India Acq Stock Volatility Analysis
Volatility refers to the frequency at which Investcorp India stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Investcorp India's price changes. Investors will then calculate the volatility of Investcorp India'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 Investcorp India's volatility:
Historical Volatility
This type of stock volatility measures Investcorp India's fluctuations based on previous trends. It's commonly used to predict Investcorp India'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 Investcorp India'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 Investcorp India'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. Investcorp India Acq 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.
Investcorp India Projected Return Density Against Market
Assuming the 90 days horizon Investcorp India Acquisition has a beta of -0.0672 . This usually indicates as returns on the benchmark increase, returns on holding Investcorp India are expected to decrease at a much lower rate. During a bear market, however, Investcorp India Acquisition 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 Investcorp India or Capital Markets 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 Investcorp India'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 Investcorp 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.
Investcorp India Acquisition has an alpha of 0.0314, implying that it can generate a 0.0314 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Investcorp India 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.Investcorp India Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Investcorp India is 1493.19. The daily returns are distributed with a variance of 0.29 and standard deviation of 0.54. The mean deviation of Investcorp India Acquisition is currently at 0.18. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.85
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | -0.07 | |
σ | Overall volatility | 0.54 | |
Ir | Information ratio | -0.02 |
Investcorp India Stock Return Volatility
Investcorp India historical daily return volatility represents how much of Investcorp India stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm shows 0.5395% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8662% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Investcorp India Volatility
Volatility is a rate at which the price of Investcorp India 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 Investcorp India may increase or decrease. In other words, similar to Investcorp's beta indicator, it measures the risk of Investcorp India and helps estimate the fluctuations that may happen in a short period of time. So if prices of Investcorp India 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 Investcorp India's volatility to invest better
Higher Investcorp India's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Investcorp India Acq 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. Investcorp India Acq 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 Investcorp India Acq investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Investcorp India'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 Investcorp India's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Investcorp India Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.87 and is 1.61 times more volatile than Investcorp India Acquisition. 4 percent of all equities and portfolios are less risky than Investcorp India. You can use Investcorp India Acquisition to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Investcorp India to be traded at $11.6 in 90 days.Good diversification
The correlation between Investcorp India Acquisition and DJI is -0.11 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp India Acquisition and DJI in the same portfolio, assuming nothing else is changed.
Investcorp India Additional Risk Indicators
The analysis of Investcorp India'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 Investcorp India's investment and either accepting that risk or mitigating it. Along with some common measures of Investcorp India 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 | 0.0579 | |||
| Market Risk Adjusted Performance | (0.42) | |||
| Mean Deviation | 0.1699 | |||
| Coefficient Of Variation | 1317.94 | |||
| Standard Deviation | 0.5121 | |||
| Variance | 0.2623 | |||
| Information Ratio | (0.02) |
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.
Investcorp India 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 Investcorp India 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. Investcorp India'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, Investcorp India'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 Investcorp India Acquisition.
Additional Tools for Investcorp Stock Analysis
When running Investcorp India's price analysis, check to measure Investcorp India'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 Investcorp India is operating at the current time. Most of Investcorp India's value examination focuses on studying past and present price action to predict the probability of Investcorp India's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Investcorp India's price. Additionally, you may evaluate how the addition of Investcorp India to your portfolios can decrease your overall portfolio volatility.