COGNA EDUCACAO (Germany) Volatility
| KE0A Stock | EUR 0.18 0.02 10.00% |
COGNA EDUCACAO appears to be out of control, given 3 months investment horizon. COGNA EDUCACAO SPADR secures Sharpe Ratio (or Efficiency) of 0.0389, which signifies that the company had a 0.0389% return per unit of return volatility over the last 3 months. We have found twenty-seven technical indicators for COGNA EDUCACAO SPADR, which you can use to evaluate the volatility of the firm. Please makes use of COGNA EDUCACAO's Mean Deviation of 7.24, risk adjusted performance of 0.0442, and Semi Deviation of 8.47 to double-check if our risk estimates are consistent with your expectations. Key indicators related to COGNA EDUCACAO's volatility include:
420 Days Market Risk | Chance Of Distress | 420 Days Economic Sensitivity |
COGNA EDUCACAO 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 COGNA daily returns, and it is calculated using variance and standard deviation. We also use COGNA's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of COGNA EDUCACAO volatility.
COGNA |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as COGNA EDUCACAO 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 COGNA EDUCACAO at lower prices to lower their average cost per share. Similarly, when the prices of COGNA EDUCACAO's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
COGNA EDUCACAO Market Sensitivity And Downside Risk
COGNA EDUCACAO's beta coefficient measures the volatility of COGNA 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 COGNA stock's returns against your selected market. In other words, COGNA EDUCACAO's beta of 1.76 provides an investor with an approximation of how much risk COGNA EDUCACAO stock can potentially add to one of your existing portfolios. COGNA EDUCACAO SPADR is showing large volatility of returns over the selected time horizon. COGNA EDUCACAO SPADR is a potential penny stock. Although COGNA EDUCACAO may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in COGNA EDUCACAO SPADR. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on COGNA 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 COGNA EDUCACAO SPADR Demand TrendCheck current 90 days COGNA EDUCACAO correlation with market (Dow Jones Industrial)COGNA Beta |
COGNA 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 | 11.21 |
It is essential to understand the difference between upside risk (as represented by COGNA EDUCACAO's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of COGNA EDUCACAO's daily returns or price. Since the actual investment returns on holding a position in cogna 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 COGNA EDUCACAO.
COGNA EDUCACAO SPADR Stock Volatility Analysis
Volatility refers to the frequency at which COGNA EDUCACAO stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with COGNA EDUCACAO's price changes. Investors will then calculate the volatility of COGNA EDUCACAO'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 COGNA EDUCACAO's volatility:
Historical Volatility
This type of stock volatility measures COGNA EDUCACAO's fluctuations based on previous trends. It's commonly used to predict COGNA EDUCACAO'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 COGNA EDUCACAO'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 COGNA EDUCACAO'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. COGNA EDUCACAO SPADR 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.
COGNA EDUCACAO Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.7588 . 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, COGNA EDUCACAO 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 COGNA EDUCACAO 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 COGNA EDUCACAO'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 COGNA 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.
COGNA EDUCACAO SPADR has an alpha of 0.2979, implying that it can generate a 0.3 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a COGNA EDUCACAO 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.COGNA EDUCACAO Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of COGNA EDUCACAO is 2572.72. The daily returns are distributed with a variance of 125.69 and standard deviation of 11.21. The mean deviation of COGNA EDUCACAO SPADR is currently at 7.25. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.30 | |
β | Beta against Dow Jones | 1.76 | |
σ | Overall volatility | 11.21 | |
Ir | Information ratio | 0.03 |
COGNA EDUCACAO Stock Return Volatility
COGNA EDUCACAO historical daily return volatility represents how much of COGNA EDUCACAO stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 11.2112% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7522% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About COGNA EDUCACAO Volatility
Volatility is a rate at which the price of COGNA EDUCACAO 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 COGNA EDUCACAO may increase or decrease. In other words, similar to COGNA's beta indicator, it measures the risk of COGNA EDUCACAO and helps estimate the fluctuations that may happen in a short period of time. So if prices of COGNA EDUCACAO 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.Cogna Educao S.A. operates as a private educational organization in Brazil and internationally. Cogna Educao S.A. was founded in 1998 and is headquartered in Belo Horizonte, Brazil. COGNA EDUCACAO is traded on Frankfurt Stock Exchange in Germany.
COGNA EDUCACAO'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 COGNA Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much COGNA EDUCACAO's price varies over time.
3 ways to utilize COGNA EDUCACAO's volatility to invest better
Higher COGNA EDUCACAO's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of COGNA EDUCACAO SPADR 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. COGNA EDUCACAO SPADR 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 COGNA EDUCACAO SPADR investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in COGNA EDUCACAO'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 COGNA EDUCACAO's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
COGNA EDUCACAO Investment Opportunity
COGNA EDUCACAO SPADR has a volatility of 11.21 and is 14.95 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of COGNA EDUCACAO SPADR is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use COGNA EDUCACAO SPADR to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of COGNA EDUCACAO to be traded at €0.171 in 90 days.Average diversification
The correlation between COGNA EDUCACAO SPADR 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 COGNA EDUCACAO SPADR and DJI in the same portfolio, assuming nothing else is changed.
COGNA EDUCACAO Additional Risk Indicators
The analysis of COGNA EDUCACAO'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 COGNA EDUCACAO's investment and either accepting that risk or mitigating it. Along with some common measures of COGNA EDUCACAO 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 | 0.0442 | |||
| Market Risk Adjusted Performance | 0.2937 | |||
| Mean Deviation | 7.24 | |||
| Semi Deviation | 8.47 | |||
| Downside Deviation | 12.17 | |||
| Coefficient Of Variation | 2189.09 | |||
| Standard Deviation | 11.14 |
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.
COGNA EDUCACAO 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 COGNA EDUCACAO 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. COGNA EDUCACAO'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, COGNA EDUCACAO'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 COGNA EDUCACAO SPADR.
Complementary Tools for COGNA Stock analysis
When running COGNA EDUCACAO's price analysis, check to measure COGNA EDUCACAO'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 COGNA EDUCACAO is operating at the current time. Most of COGNA EDUCACAO's value examination focuses on studying past and present price action to predict the probability of COGNA EDUCACAO's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move COGNA EDUCACAO's price. Additionally, you may evaluate how the addition of COGNA EDUCACAO to your portfolios can decrease your overall portfolio volatility.
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