Kraft Bank (Norway) Volatility
| KRAB Stock | NOK 8.40 0.50 5.62% |
Kraft Bank Asa has Sharpe Ratio of -0.0078, which conveys that the firm had a -0.0078% return per unit of risk over the last 3 months. Kraft Bank exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Kraft Bank's Mean Deviation of 1.29, risk adjusted performance of 0.0101, and Downside Deviation of 2.48 to check out the risk estimate we provide. Key indicators related to Kraft Bank's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Kraft Bank 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 Kraft daily returns, and it is calculated using variance and standard deviation. We also use Kraft's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Kraft Bank volatility.
Kraft |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Kraft Bank at lower prices. For example, an investor can purchase Kraft 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 against Kraft Stock
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| 0.32 | AUTO | AutoStore Holdings | PairCorr |
Kraft Bank Market Sensitivity And Downside Risk
Kraft Bank's beta coefficient measures the volatility of Kraft 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 Kraft stock's returns against your selected market. In other words, Kraft Bank's beta of 0.36 provides an investor with an approximation of how much risk Kraft Bank stock can potentially add to one of your existing portfolios. Kraft Bank Asa currently demonstrates below-average downside deviation. It has Information Ratio of -0.06 and Jensen Alpha of -0.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kraft Bank'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 Kraft Bank'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 Kraft Bank Asa Demand TrendCheck current 90 days Kraft Bank correlation with market (Dow Jones Industrial)Kraft Beta |
Kraft 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 | 2.05 |
It is essential to understand the difference between upside risk (as represented by Kraft Bank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Kraft Bank's daily returns or price. Since the actual investment returns on holding a position in kraft 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 Kraft Bank.
Kraft Bank Asa Stock Volatility Analysis
Volatility refers to the frequency at which Kraft Bank stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Kraft Bank's price changes. Investors will then calculate the volatility of Kraft Bank'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 Kraft Bank's volatility:
Historical Volatility
This type of stock volatility measures Kraft Bank's fluctuations based on previous trends. It's commonly used to predict Kraft Bank'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 Kraft Bank'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 Kraft Bank'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. Kraft Bank Asa 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.
Kraft Bank Projected Return Density Against Market
Assuming the 90 days trading horizon Kraft Bank has a beta of 0.3575 . This indicates as returns on the market go up, Kraft Bank average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Kraft Bank Asa 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 Kraft Bank or Financial Services 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 Kraft Bank'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 Kraft 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.
Kraft Bank Asa 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 Kraft Bank 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.Kraft Bank Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Kraft Bank is -12832.02. The daily returns are distributed with a variance of 4.21 and standard deviation of 2.05. The mean deviation of Kraft Bank Asa is currently at 1.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.04 | |
β | Beta against Dow Jones | 0.36 | |
σ | Overall volatility | 2.05 | |
Ir | Information ratio | -0.06 |
Kraft Bank Stock Return Volatility
Kraft Bank historical daily return volatility represents how much of Kraft Bank stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.0507% 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 |
About Kraft Bank Volatility
Volatility is a rate at which the price of Kraft Bank 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 Kraft Bank may increase or decrease. In other words, similar to Kraft's beta indicator, it measures the risk of Kraft Bank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Kraft Bank 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.Kraft Bank ASA provides refinancing of mortgages and unsecured loans with and without collateral to individuals in Norway. Kraft Bank ASA was founded in 2016 and is based in Sandnes, Norway. KRAFT BANK operates under BanksRegional classification in Norway and is traded on Oslo Stock Exchange. It employs 31 people.
Kraft Bank'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 Kraft Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Kraft Bank's price varies over time.
3 ways to utilize Kraft Bank's volatility to invest better
Higher Kraft Bank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Kraft Bank Asa 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. Kraft Bank Asa 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 Kraft Bank Asa investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Kraft Bank'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 Kraft Bank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Kraft Bank Investment Opportunity
Kraft Bank Asa has a volatility of 2.05 and is 2.63 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Kraft Bank Asa is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use Kraft Bank Asa to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Kraft Bank to be traded at 7.98 in 90 days.Average diversification
The correlation between Kraft Bank Asa and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Bank Asa and DJI in the same portfolio, assuming nothing else is changed.
Kraft Bank Additional Risk Indicators
The analysis of Kraft Bank'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 Kraft Bank's investment and either accepting that risk or mitigating it. Along with some common measures of Kraft Bank 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 | 0.0101 | |||
| Market Risk Adjusted Performance | 0.011 | |||
| Mean Deviation | 1.29 | |||
| Semi Deviation | 1.63 | |||
| Downside Deviation | 2.48 | |||
| Coefficient Of Variation | 18856.41 | |||
| Standard Deviation | 1.96 |
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.
Kraft Bank 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 Kraft Bank 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. Kraft Bank'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, Kraft Bank'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 Kraft Bank Asa.
Other Information on Investing in Kraft Stock
Kraft Bank financial ratios help investors to determine whether Kraft Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Kraft with respect to the benefits of owning Kraft Bank security.