Li Bang International Stock Volatility
| LBGJ Stock | 0.82 0.02 2.50% |
Li Bang appears to be out of control, given 3 months investment horizon. Li Bang International retains Efficiency (Sharpe Ratio) of 0.0971, which conveys that the firm had a 0.0971 % return per unit of price deviation over the last 3 months. By inspecting Li Bang's technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please exercise Li Bang's Standard Deviation of 5.72, mean deviation of 3.87, and Market Risk Adjusted Performance of (7.77) to check out if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0971
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Based on monthly moving average Li Bang is performing at about 7% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Li Bang by adding it to a well-diversified portfolio.
Key indicators related to Li Bang's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Li Bang 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 LBGJ daily returns, and it is calculated using variance and standard deviation. We also use LBGJ's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Li Bang volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Li Bang at lower prices. For example, an investor can purchase LBGJ 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. Main indicators related to Li Bang's market risk premium analysis include:
Beta (0.04) | Alpha 0.34 | Risk 5.82 | Sharpe Ratio 0.0971 | Expected Return 0.57 |
Moving together with LBGJ Stock
| 0.82 | 0ACC | Accelleron Industries | PairCorr |
| 0.61 | HY | Hyster Yale Materials | PairCorr |
| 0.73 | IR | Ingersoll Rand | PairCorr |
| 0.68 | PH | Parker Hannifin | PairCorr |
| 0.8 | OSG | OSG Corporation | PairCorr |
| 0.65 | MBH3 | Maschinenfabrik Berthold | PairCorr |
| 0.72 | EAAS | Eenergy Group PLC | PairCorr |
| 0.77 | IMI1 | IMI plc | PairCorr |
| 0.65 | CE3 | Chongqing Machinery | PairCorr |
Moving against LBGJ Stock
Li Bang Market Sensitivity And Downside Risk
Li Bang's beta coefficient measures the volatility of LBGJ 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 LBGJ stock's returns against your selected market. In other words, Li Bang's beta of -0.0437 provides an investor with an approximation of how much risk Li Bang stock can potentially add to one of your existing portfolios. Li Bang International exhibits above-average semi-deviation for your current time horizon. Li Bang International is a potential penny stock. Although Li Bang 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 Li Bang International. 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 LBGJ 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 Li Bang International Demand TrendCheck current 90 days Li Bang correlation with market (Dow Jones Industrial)Li Bang Volatility and Downside Risk
LBGJ 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.
Li Bang International Stock Volatility Analysis
Volatility refers to the frequency at which Li Bang stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Li Bang's price changes. Investors will then calculate the volatility of Li Bang'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 Li Bang's volatility:
Historical Volatility
This type of stock volatility measures Li Bang's fluctuations based on previous trends. It's commonly used to predict Li Bang'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 Li Bang'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 Li Bang'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. Li Bang International 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.
Li Bang Projected Return Density Against Market
Given the investment horizon of 90 days Li Bang International has a beta of -0.0437 . This indicates as returns on the benchmark increase, returns on holding Li Bang are expected to decrease at a much lower rate. During a bear market, however, Li Bang International 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 Li Bang or Machinery 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 Li Bang'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 LBGJ 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.
Predicted Return Density |
| Returns |
What Drives a Li Bang 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Li Bang Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Li Bang is 1030.35. The daily returns are distributed with a variance of 33.93 and standard deviation of 5.82. The mean deviation of Li Bang International is currently at 3.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | -0.04 | |
σ | Overall volatility | 5.82 | |
Ir | Information ratio | 0.05 |
Li Bang Stock Return Volatility
Li Bang historical daily return volatility represents how much of Li Bang stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 5.8247% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7702% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between LBGJ Stock performing well and Li Bang Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Li Bang's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| PASW | 7.05 | (0.46) | 0.00 | (0.25) | 0.00 | 15.00 | 102.52 | |||
| INLF | 10.14 | 2.43 | 0.16 | (0.63) | 10.21 | 9.09 | 353.50 | |||
| ZDAI | 7.06 | 0.27 | 0.03 | 0.31 | 7.01 | 19.57 | 57.23 | |||
| ARTW | 2.60 | (0.08) | (0.01) | 0.01 | 4.24 | 5.94 | 24.58 | |||
| CCTG | 7.39 | (2.11) | 0.00 | (0.96) | 0.00 | 10.71 | 61.78 | |||
| PSIG | 3.25 | 0.64 | 0.15 | 2.46 | 3.10 | 11.58 | 44.89 | |||
| AQMS | 4.71 | (0.56) | 0.00 | (0.22) | 0.00 | 8.45 | 27.61 | |||
| OFAL | 5.37 | (0.66) | 0.00 | (1.08) | 0.00 | 10.61 | 31.50 | |||
| GRNQ | 3.12 | 0.14 | 0.02 | 0.69 | 3.60 | 8.07 | 20.82 | |||
| CETY | 7.70 | (0.75) | 0.00 | (0.08) | 0.00 | 10.91 | 140.58 |
About Li Bang Volatility
Volatility is a rate at which the price of Li Bang 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 Li Bang may increase or decrease. In other words, similar to LBGJ's beta indicator, it measures the risk of Li Bang and helps estimate the fluctuations that may happen in a short period of time. So if prices of Li Bang 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 853.3 K | 764 K | |
| Market Cap | 81.2 M | 72.2 M |
Li Bang'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 LBGJ Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Li Bang's price varies over time.
3 ways to utilize Li Bang's volatility to invest better
Higher Li Bang's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Li Bang International 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. Li Bang International 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 Li Bang International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Li Bang'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 Li Bang's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Li Bang Investment Opportunity
Li Bang International has a volatility of 5.82 and is 7.56 times more volatile than Dow Jones Industrial. 52 percent of all equities and portfolios are less risky than Li Bang. You can use Li Bang International to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Li Bang to be traded at 0.984 in 90 days.Very weak diversification
The correlation between Li Bang International and DJI is 0.51 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Li Bang International and DJI in the same portfolio, assuming nothing else is changed.
Li Bang Additional Risk Indicators
The analysis of Li Bang'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 Li Bang's investment and either accepting that risk or mitigating it. Along with some common measures of Li Bang 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 | 0.058 | |||
| Market Risk Adjusted Performance | (7.77) | |||
| Mean Deviation | 3.87 | |||
| Semi Deviation | 4.07 | |||
| Downside Deviation | 4.79 | |||
| Coefficient Of Variation | 1633.06 | |||
| Standard Deviation | 5.72 |
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.
Li Bang 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 Li Bang 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. Li Bang'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, Li Bang'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 Li Bang International.
When determining whether Li Bang International is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if LBGJ Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Li Bang International Stock. Highlighted below are key reports to facilitate an investment decision about Li Bang International Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Li Bang International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
What growth prospects exist in Industrial Machinery & Supplies & Components sector? Can LBGJ capture new markets? Factors like these will boost the valuation of Li Bang. Expected growth trajectory for LBGJ significantly influences the price investors are willing to assign. Valuation analysis balances hard financial data with qualitative growth assessments. While each Li Bang valuation metric matters, prioritizing which indicators carry greater predictive weight remains essential.
Quarterly Earnings Growth 0.117 | Earnings Share (0.06) | Revenue Per Share | Quarterly Revenue Growth (0.1) | Return On Assets |
Investors evaluate Li Bang International using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Li Bang's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. External factors like market trends, sector rotation, and investor psychology can cause Li Bang's market price to deviate significantly from intrinsic value.
Understanding that Li Bang's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Li Bang represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Li Bang's market price signifies the transaction level at which participants voluntarily complete trades.