Jbs Sa Stock Volatility
| JBSAY Stock | USD 11.92 0.16 1.32% |
At this stage we consider JBS OTC Stock to be not too volatile. JBS SA holds Efficiency (Sharpe) Ratio of 0.0124, which attests that the company had a 0.0124% return per unit of volatility over the last 3 months. We have found twenty-three technical indicators for JBS SA, which you can use to evaluate the volatility of the entity. Please check out JBS SA's coefficient of variation of (2,829), and Market Risk Adjusted Performance of (0.23) to validate if the risk estimate we provide is consistent with the expected return of 0.024%. Key indicators related to JBS SA's volatility include:
690 Days Market Risk | Chance Of Distress | 690 Days Economic Sensitivity |
JBS SA OTC 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 JBS daily returns, and it is calculated using variance and standard deviation. We also use JBS's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of JBS SA volatility.
JBS |
ESG Sustainability
While most ESG disclosures are voluntary, JBS SA's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to JBS SA's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as JBS SA 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 JBS SA at lower prices. For example, an investor can purchase JBS 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 JBS SA'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 JBS OTC Stock
| 0.46 | BMBOY | Grupo Bimbo SAB | PairCorr |
| 0.43 | GIS | General Mills | PairCorr |
| 0.43 | MKC-V | McCormick Company | PairCorr |
| 0.39 | TLK | Telkom Indonesia Tbk | PairCorr |
| 0.37 | GRBMF | Grupo Bimbo SAB | PairCorr |
| 0.36 | PBCRY | Bank Central Asia | PairCorr |
| 0.35 | BKRKY | Bank Rakyat | PairCorr |
| 0.33 | PPERY | Bank Mandiri Persero | PairCorr |
JBS SA Market Sensitivity And Downside Risk
JBS SA's beta coefficient measures the volatility of JBS otc 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 JBS otc stock's returns against your selected market. In other words, JBS SA's beta of 0.34 provides an investor with an approximation of how much risk JBS SA otc stock can potentially add to one of your existing portfolios. JBS SA exhibits very low volatility with skewness of -0.35 and kurtosis of -0.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure JBS SA's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact JBS SA's otc 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 JBS SA Demand TrendCheck current 90 days JBS SA correlation with market (Dow Jones Industrial)JBS Beta |
JBS 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 | 1.95 |
It is essential to understand the difference between upside risk (as represented by JBS SA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of JBS SA's daily returns or price. Since the actual investment returns on holding a position in jbs otc 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 JBS SA.
JBS SA OTC Stock Volatility Analysis
Volatility refers to the frequency at which JBS SA otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with JBS SA's price changes. Investors will then calculate the volatility of JBS SA's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 JBS SA's volatility:
Historical Volatility
This type of otc volatility measures JBS SA's fluctuations based on previous trends. It's commonly used to predict JBS SA's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for JBS SA's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on JBS SA'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. JBS SA 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.
JBS SA Projected Return Density Against Market
Assuming the 90 days horizon JBS SA has a beta of 0.3371 . This indicates as returns on the market go up, JBS SA average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding JBS SA will be expected to be much smaller as well.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 JBS SA or Consumer Defensive 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 JBS SA's price will be affected by overall otc 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 JBS otc'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.
JBS SA has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a JBS SA Price Volatility?
Several factors can influence a otc'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.JBS SA OTC Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of JBS SA is 8096.47. The daily returns are distributed with a variance of 3.79 and standard deviation of 1.95. The mean deviation of JBS SA is currently at 1.52. 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 | 1.95 | |
Ir | Information ratio | -0.1 |
JBS SA OTC Stock Return Volatility
JBS SA historical daily return volatility represents how much of JBS SA otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.946% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About JBS SA Volatility
Volatility is a rate at which the price of JBS SA 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 JBS SA may increase or decrease. In other words, similar to JBS's beta indicator, it measures the risk of JBS SA and helps estimate the fluctuations that may happen in a short period of time. So if prices of JBS SA 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.JBS S.A., a food company, processes and trades in animal protein worldwide. JBS S.A. was founded in 1953 and is headquartered in So Paulo, Brazil. Jbs SA operates under Packaged Foods classification in the United States and is traded on OTC Exchange. It employs 250000 people.
JBS SA'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 JBS OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much JBS SA's price varies over time.
3 ways to utilize JBS SA's volatility to invest better
Higher JBS SA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of JBS SA 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. JBS SA 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 JBS SA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in JBS SA'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 JBS SA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
JBS SA Investment Opportunity
JBS SA has a volatility of 1.95 and is 2.64 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than JBS SA. You can use JBS SA to protect your portfolios against small market fluctuations. The otc stock experiences a bearish sentiment with high volatility. Check odds of JBS SA to be traded at $11.56 in 90 days.Average diversification
The correlation between JBS SA and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding JBS SA and DJI in the same portfolio, assuming nothing else is changed.
JBS SA Additional Risk Indicators
The analysis of JBS SA'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 JBS SA's investment and either accepting that risk or mitigating it. Along with some common measures of JBS SA otc 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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.23) | |||
| Mean Deviation | 1.6 | |||
| Coefficient Of Variation | (2,829) | |||
| Standard Deviation | 2.03 | |||
| Variance | 4.14 | |||
| Information Ratio | (0.1) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
JBS SA 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 JBS SA 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. JBS SA'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, JBS SA'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 JBS SA.
Additional Tools for JBS OTC Stock Analysis
When running JBS SA's price analysis, check to measure JBS SA'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 JBS SA is operating at the current time. Most of JBS SA's value examination focuses on studying past and present price action to predict the probability of JBS SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move JBS SA's price. Additionally, you may evaluate how the addition of JBS SA to your portfolios can decrease your overall portfolio volatility.