JERICHO OIL (Germany) Volatility
| JLM Stock | 0.08 0.01 6.29% |
JERICHO OIL appears to be out of control, given 3 months investment horizon. JERICHO OIL holds Efficiency (Sharpe) Ratio of 0.055, which attests that the entity had a 0.055% return per unit of volatility over the last 3 months. By analyzing JERICHO OIL's technical indicators, you can evaluate if the expected return of 0.54% is justified by implied risk. Please utilize JERICHO OIL's risk adjusted performance of 0.0333, and Market Risk Adjusted Performance of 0.2109 to validate if our risk estimates are consistent with your expectations.
JERICHO |
JERICHO OIL 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 JERICHO daily returns, and it is calculated using variance and standard deviation. We also use JERICHO's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of JERICHO OIL volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as JERICHO OIL 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 JERICHO OIL at lower prices. For example, an investor can purchase JERICHO 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 JERICHO OIL'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 JERICHO Stock
JERICHO OIL Market Sensitivity And Downside Risk
JERICHO OIL's beta coefficient measures the volatility of JERICHO 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 JERICHO stock's returns against your selected market. In other words, JERICHO OIL's beta of 1.5 provides an investor with an approximation of how much risk JERICHO OIL stock can potentially add to one of your existing portfolios. JERICHO OIL is showing large volatility of returns over the selected time horizon. JERICHO OIL is a penny stock. Although JERICHO OIL 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 JERICHO OIL. 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 JERICHO 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 JERICHO OIL Demand TrendCheck current 90 days JERICHO OIL correlation with market (Dow Jones Industrial)JERICHO Beta |
JERICHO 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 | 9.75 |
It is essential to understand the difference between upside risk (as represented by JERICHO OIL's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of JERICHO OIL's daily returns or price. Since the actual investment returns on holding a position in jericho 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 JERICHO OIL.
JERICHO OIL Stock Volatility Analysis
Volatility refers to the frequency at which JERICHO OIL stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with JERICHO OIL's price changes. Investors will then calculate the volatility of JERICHO OIL'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 JERICHO OIL's volatility:
Historical Volatility
This type of stock volatility measures JERICHO OIL's fluctuations based on previous trends. It's commonly used to predict JERICHO OIL'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 JERICHO OIL'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 JERICHO OIL'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. JERICHO OIL 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.
JERICHO OIL Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.4989 . This 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, JERICHO OIL 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 JERICHO OIL or JERICHO 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 JERICHO OIL'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 JERICHO 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.
JERICHO OIL has an alpha of 0.1207, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a JERICHO OIL 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.JERICHO OIL Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of JERICHO OIL is 1819.16. The daily returns are distributed with a variance of 95.13 and standard deviation of 9.75. The mean deviation of JERICHO OIL is currently at 7.11. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | 1.50 | |
σ | Overall volatility | 9.75 | |
Ir | Information ratio | 0.02 |
JERICHO OIL Stock Return Volatility
JERICHO OIL historical daily return volatility represents how much of JERICHO OIL stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 9.7535% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
JERICHO OIL Investment Opportunity
JERICHO OIL has a volatility of 9.75 and is 12.5 times more volatile than Dow Jones Industrial. 86 percent of all equities and portfolios are less risky than JERICHO OIL. You can use JERICHO OIL to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of JERICHO OIL to be traded at 0.1056 in 90 days.Average diversification
The correlation between JERICHO OIL and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding JERICHO OIL and DJI in the same portfolio, assuming nothing else is changed.
JERICHO OIL Additional Risk Indicators
The analysis of JERICHO OIL'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 JERICHO OIL's investment and either accepting that risk or mitigating it. Along with some common measures of JERICHO OIL 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 | 0.0333 | |||
| Market Risk Adjusted Performance | 0.2109 | |||
| Mean Deviation | 7.31 | |||
| Semi Deviation | 8.08 | |||
| Downside Deviation | 9.51 | |||
| Coefficient Of Variation | 3178.34 | |||
| Standard Deviation | 9.89 |
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.
JERICHO OIL 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 JERICHO OIL 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. JERICHO OIL'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, JERICHO OIL'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 JERICHO OIL.
Additional Tools for JERICHO Stock Analysis
When running JERICHO OIL's price analysis, check to measure JERICHO OIL'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 JERICHO OIL is operating at the current time. Most of JERICHO OIL's value examination focuses on studying past and present price action to predict the probability of JERICHO OIL's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move JERICHO OIL's price. Additionally, you may evaluate how the addition of JERICHO OIL to your portfolios can decrease your overall portfolio volatility.