PARADISE ENTERT (Germany) Volatility
| LIL3 Stock | EUR 0.05 0 1.98% |
PARADISE ENTERT appears to be out of control, given 3 months investment horizon. PARADISE ENTERT HD maintains Sharpe Ratio (i.e., Efficiency) of 0.0357, which implies the company had a 0.0357 % return per unit of standard deviation over the last 3 months. By inspecting PARADISE ENTERT's technical indicators, you can evaluate if the expected return of 0.52% is justified by implied risk. Please evaluate PARADISE ENTERT's Mean Deviation of 8.07, market risk adjusted performance of 0.0757, and Coefficient Of Variation of 8867.33 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0357
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Estimated Market Risk
| 14.43 actual daily | 96 96% of assets are less volatile |
Expected Return
| 0.52 actual daily | 10 90% of assets have higher returns |
Risk-Adjusted Return
| 0.04 actual daily | 2 98% of assets perform better |
Based on monthly moving average PARADISE ENTERT is performing at about 2% 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 PARADISE ENTERT by adding it to a well-diversified portfolio.
Key indicators related to PARADISE ENTERT's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
PARADISE ENTERT 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 PARADISE daily returns, and it is calculated using variance and standard deviation. We also use PARADISE's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of PARADISE ENTERT volatility.
PARADISE |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as PARADISE ENTERT 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 PARADISE ENTERT at lower prices to lower their average cost per share. Similarly, when the prices of PARADISE ENTERT's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to PARADISE ENTERT's market risk premium analysis include:
Beta 2.37 | Alpha 0.0136 | Risk 14.43 | Sharpe Ratio 0.0357 | Expected Return 0.52 |
Moving against PARADISE Stock
| 0.69 | ALV | Allianz SE | PairCorr |
| 0.66 | NCO | Nedbank Group Limited | PairCorr |
| 0.64 | H3M | Hochschild Mining plc | PairCorr |
| 0.64 | MSI | Mitsui Chemicals | PairCorr |
| 0.61 | TCW | TOKYU STRUCTION | PairCorr |
| 0.6 | WWR | Woolworths Group Earnings Call Next Week | PairCorr |
| 0.6 | 317A | STINGRAY GROUP INC | PairCorr |
| 0.6 | GLDA | Amundi Physical Gold | PairCorr |
| 0.59 | 3I5 | Frontdoor | PairCorr |
| 0.59 | 7GA | Gestamp Automoción | PairCorr |
PARADISE ENTERT Market Sensitivity And Downside Risk
PARADISE ENTERT's beta coefficient measures the volatility of PARADISE 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 PARADISE stock's returns against your selected market. In other words, PARADISE ENTERT's beta of 2.37 provides an investor with an approximation of how much risk PARADISE ENTERT stock can potentially add to one of your existing portfolios. PARADISE ENTERT HD is showing large volatility of returns over the selected time horizon. PARADISE ENTERT HD is a penny stock. Although PARADISE ENTERT 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 PARADISE ENTERT HD. 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 PARADISE 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 PARADISE ENTERT HD Demand TrendCheck current 90 days PARADISE ENTERT correlation with market (Dow Jones Industrial)PARADISE ENTERT Volatility and Downside Risk
PARADISE 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.
PARADISE ENTERT HD Stock Volatility Analysis
Volatility refers to the frequency at which PARADISE ENTERT stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with PARADISE ENTERT's price changes. Investors will then calculate the volatility of PARADISE ENTERT'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 PARADISE ENTERT's volatility:
Historical Volatility
This type of stock volatility measures PARADISE ENTERT's fluctuations based on previous trends. It's commonly used to predict PARADISE ENTERT'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 PARADISE ENTERT'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 PARADISE ENTERT'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. PARADISE ENTERT HD 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.
PARADISE ENTERT Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 2.3671 . 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, PARADISE ENTERT 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 PARADISE ENTERT or Hotels, Restaurants & Leisure 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 PARADISE ENTERT'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 PARADISE 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 PARADISE ENTERT 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.PARADISE ENTERT Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of PARADISE ENTERT is 2798.24. The daily returns are distributed with a variance of 208.27 and standard deviation of 14.43. The mean deviation of PARADISE ENTERT HD is currently at 7.54. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 2.37 | |
σ | Overall volatility | 14.43 | |
Ir | Information ratio | 0.01 |
PARADISE ENTERT Stock Return Volatility
PARADISE ENTERT historical daily return volatility represents how much of PARADISE ENTERT stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 14.4316% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7551% 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 PARADISE Stock performing well and PARADISE ENTERT 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 PARADISE ENTERT'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| EJ7 | 8.70 | 1.88 | 0.00 | 0.46 | 0.00 | 50.00 | 106.67 | |||
| PJM | 8.17 | 1.69 | 0.15 | (1.70) | 8.54 | 21.05 | 68.44 | |||
| C6T | 1.92 | 0.03 | (0.01) | (0.30) | 3.36 | 3.37 | 26.06 | |||
| BYRA | 4.14 | 0.38 | 0.04 | (0.35) | 4.34 | 11.11 | 26.67 | |||
| NVDG | 2.12 | 0.03 | 0.00 | 0.14 | 2.72 | 4.88 | 17.14 | |||
| APC8 | 1.17 | (0.02) | 0.00 | 0.14 | 0.00 | 2.66 | 7.08 | |||
| IBNN | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| AMZ1 | 2.71 | (0.26) | 0.00 | (2.70) | 0.00 | 6.37 | 23.77 |
About PARADISE ENTERT Volatility
Volatility is a rate at which the price of PARADISE ENTERT 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 PARADISE ENTERT may increase or decrease. In other words, similar to PARADISE's beta indicator, it measures the risk of PARADISE ENTERT and helps estimate the fluctuations that may happen in a short period of time. So if prices of PARADISE ENTERT 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.Paradise Entertainment Limited, an investment holding company, primarily provides casino management services in Macau and internationally. Paradise Entertainment Limited is a subsidiary of August Profit Investments Limited. Paradise Entertainment operates under Electronic Gaming Multimedia classification in Germany and is traded on Frankfurt Stock Exchange. It employs 430 people.
PARADISE ENTERT'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 PARADISE Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much PARADISE ENTERT's price varies over time.
3 ways to utilize PARADISE ENTERT's volatility to invest better
Higher PARADISE ENTERT's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of PARADISE ENTERT HD 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. PARADISE ENTERT HD 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 PARADISE ENTERT HD investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in PARADISE ENTERT'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 PARADISE ENTERT's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
PARADISE ENTERT Investment Opportunity
PARADISE ENTERT HD has a volatility of 14.43 and is 18.99 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of PARADISE ENTERT HD is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use PARADISE ENTERT HD to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of PARADISE ENTERT to be traded at €0.0567 in 90 days.Excellent diversification
The correlation between PARADISE ENTERT HD and DJI is -0.55 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PARADISE ENTERT HD and DJI in the same portfolio, assuming nothing else is changed.
PARADISE ENTERT Additional Risk Indicators
The analysis of PARADISE ENTERT'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 PARADISE ENTERT's investment and either accepting that risk or mitigating it. Along with some common measures of PARADISE ENTERT 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 | 0.0186 | |||
| Market Risk Adjusted Performance | 0.0757 | |||
| Mean Deviation | 8.07 | |||
| Semi Deviation | 12.35 | |||
| Downside Deviation | 14.01 | |||
| Coefficient Of Variation | 8867.33 | |||
| Standard Deviation | 14.67 |
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.
PARADISE ENTERT 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 PARADISE ENTERT 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. PARADISE ENTERT'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, PARADISE ENTERT'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 PARADISE ENTERT HD.
Complementary Tools for PARADISE Stock analysis
When running PARADISE ENTERT's price analysis, check to measure PARADISE ENTERT'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 PARADISE ENTERT is operating at the current time. Most of PARADISE ENTERT's value examination focuses on studying past and present price action to predict the probability of PARADISE ENTERT's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PARADISE ENTERT's price. Additionally, you may evaluate how the addition of PARADISE ENTERT to your portfolios can decrease your overall portfolio volatility.
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