Lilium Nv Stock Volatility
| LILM Stock | USD 0.09 0.01 16.05% |
Lilium NV has Sharpe Ratio of -0.0629, which conveys that the firm had a -0.0629% return per unit of risk over the last 3 months. Lilium NV exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lilium NV's Mean Deviation of 10.48, risk adjusted performance of (0.04), and Standard Deviation of 19.54 to check out the risk estimate we provide. Key indicators related to Lilium NV's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Lilium NV 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 Lilium daily returns, and it is calculated using variance and standard deviation. We also use Lilium's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Lilium NV volatility.
Lilium |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Lilium NV 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 Lilium NV at lower prices. For example, an investor can purchase Lilium 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 Lilium NV'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 Lilium Stock
| 0.9 | ESLT | Elbit Systems | PairCorr |
| 0.75 | DRS | Leonardo DRS, Common | PairCorr |
| 0.73 | CW | Curtiss Wright | PairCorr |
| 0.69 | HWM | Howmet Aerospace | PairCorr |
| 0.6 | CAE | CAE Inc | PairCorr |
| 0.55 | PL | Planet Labs PBC | PairCorr |
| 0.47 | EH | Ehang Holdings | PairCorr |
| 0.47 | ERJ | Embraer SA ADR Sell-off Trend | PairCorr |
| 0.4 | CVU | CPI Aerostructures | PairCorr |
Lilium NV Market Sensitivity And Downside Risk
Lilium NV's beta coefficient measures the volatility of Lilium 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 Lilium stock's returns against your selected market. In other words, Lilium NV's beta of 2.14 provides an investor with an approximation of how much risk Lilium NV stock can potentially add to one of your existing portfolios. Lilium NV is displaying above-average volatility over the selected time horizon. Lilium NV is a penny stock. Although Lilium NV 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 Lilium NV. 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 Lilium 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 Lilium NV Demand TrendCheck current 90 days Lilium NV correlation with market (Dow Jones Industrial)Lilium Beta |
Lilium 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 | 19.85 |
It is essential to understand the difference between upside risk (as represented by Lilium NV's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Lilium NV's daily returns or price. Since the actual investment returns on holding a position in lilium 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 Lilium NV.
Lilium NV Stock Volatility Analysis
Volatility refers to the frequency at which Lilium NV stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Lilium NV's price changes. Investors will then calculate the volatility of Lilium NV'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 Lilium NV's volatility:
Historical Volatility
This type of stock volatility measures Lilium NV's fluctuations based on previous trends. It's commonly used to predict Lilium NV'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 Lilium NV'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 Lilium NV'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. Lilium NV 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.
Lilium NV Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 2.1441 . 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, Lilium NV 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 Lilium NV 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 Lilium NV'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 Lilium 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.
Lilium NV 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 Lilium NV 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.Lilium NV Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Lilium NV is -1590.16. The daily returns are distributed with a variance of 394.05 and standard deviation of 19.85. The mean deviation of Lilium NV is currently at 10.76. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -1.52 | |
β | Beta against Dow Jones | 2.14 | |
σ | Overall volatility | 19.85 | |
Ir | Information ratio | -0.07 |
Lilium NV Stock Return Volatility
Lilium NV historical daily return volatility represents how much of Lilium NV stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 19.8506% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7762% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Lilium NV Volatility
Volatility is a rate at which the price of Lilium NV 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 Lilium NV may increase or decrease. In other words, similar to Lilium's beta indicator, it measures the risk of Lilium NV and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lilium NV 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 | 10.8 M | 7.9 M | |
| Market Cap | 544.7 M | 517.5 M |
Lilium NV'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 Lilium Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Lilium NV's price varies over time.
3 ways to utilize Lilium NV's volatility to invest better
Higher Lilium NV's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Lilium NV 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. Lilium NV 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 Lilium NV investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Lilium NV'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 Lilium NV's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Lilium NV Investment Opportunity
Lilium NV has a volatility of 19.85 and is 25.45 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Lilium NV is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Lilium NV to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Lilium NV to be traded at $0.1175 in 90 days.Significant diversification
The correlation between Lilium NV and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lilium NV and DJI in the same portfolio, assuming nothing else is changed.
Lilium NV Additional Risk Indicators
The analysis of Lilium NV'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 Lilium NV's investment and either accepting that risk or mitigating it. Along with some common measures of Lilium NV 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 | (0.04) | |||
| Market Risk Adjusted Performance | (0.58) | |||
| Mean Deviation | 10.48 | |||
| Coefficient Of Variation | (1,564) | |||
| Standard Deviation | 19.54 | |||
| Variance | 381.97 | |||
| Information Ratio | (0.07) |
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.
Lilium NV 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 Lilium NV 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. Lilium NV'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, Lilium NV'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 Lilium NV.
When determining whether Lilium NV is a strong investment it is important to analyze Lilium NV's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lilium NV's future performance. For an informed investment choice regarding Lilium Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lilium NV. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. To learn how to invest in Lilium Stock, please use our How to Invest in Lilium NV guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lilium NV. If investors know Lilium will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lilium NV listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.07 | Quarterly Revenue Growth (0.52) | Return On Assets (0.79) | Return On Equity (3.24) |
The market value of Lilium NV is measured differently than its book value, which is the value of Lilium that is recorded on the company's balance sheet. Investors also form their own opinion of Lilium NV's value that differs from its market value or its book value, called intrinsic value, which is Lilium NV's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lilium NV's market value can be influenced by many factors that don't directly affect Lilium NV's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lilium NV's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lilium NV is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lilium NV's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.