Localiza Rent A Stock Volatility
| LZRFY Stock | USD 7.37 0.10 1.34% |
At this stage we consider Localiza OTC Stock to be slightly risky. Localiza Rent A has Sharpe Ratio of 0.0034, which conveys that the firm had a 0.0034% return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Localiza Rent, which you can use to evaluate the volatility of the firm. Please verify Localiza Rent's Mean Deviation of 2.37, risk adjusted performance of 0.0034, and Standard Deviation of 3.24 to check out if the risk estimate we provide is consistent with the expected return of 0.0109%. Key indicators related to Localiza Rent's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Localiza Rent OTC 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 Localiza daily returns, and it is calculated using variance and standard deviation. We also use Localiza's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Localiza Rent volatility.
Localiza |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Localiza Rent 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 Localiza Rent at lower prices. For example, an investor can purchase Localiza 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 Localiza Rent'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 Localiza OTC Stock
Localiza Rent Market Sensitivity And Downside Risk
Localiza Rent's beta coefficient measures the volatility of Localiza otc 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 Localiza otc stock's returns against your selected market. In other words, Localiza Rent's beta of 1.23 provides an investor with an approximation of how much risk Localiza Rent otc stock can potentially add to one of your existing portfolios. Localiza Rent A exhibits very low volatility with skewness of -0.42 and kurtosis of 1.45. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Localiza Rent's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Localiza Rent's otc 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 Localiza Rent A Demand TrendCheck current 90 days Localiza Rent correlation with market (Dow Jones Industrial)Localiza Beta |
Localiza 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 | 3.26 |
It is essential to understand the difference between upside risk (as represented by Localiza Rent's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Localiza Rent's daily returns or price. Since the actual investment returns on holding a position in localiza otc 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 Localiza Rent.
Localiza Rent A OTC Stock Volatility Analysis
Volatility refers to the frequency at which Localiza Rent otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Localiza Rent's price changes. Investors will then calculate the volatility of Localiza Rent's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Localiza Rent's volatility:
Historical Volatility
This type of otc volatility measures Localiza Rent's fluctuations based on previous trends. It's commonly used to predict Localiza Rent's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Localiza Rent's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Localiza Rent'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. Localiza Rent A 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.
Localiza Rent Projected Return Density Against Market
Assuming the 90 days horizon the otc stock has the beta coefficient of 1.2294 . 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, Localiza Rent 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 Localiza Rent or Industrials 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 Localiza Rent's price will be affected by overall otc 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 Localiza otc'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.
Localiza Rent A 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 Localiza Rent Price Volatility?
Several factors can influence a otc'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.Localiza Rent OTC Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Localiza Rent is 29814.47. The daily returns are distributed with a variance of 10.6 and standard deviation of 3.26. The mean deviation of Localiza Rent A is currently at 2.35. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.15 | |
β | Beta against Dow Jones | 1.23 | |
σ | Overall volatility | 3.26 | |
Ir | Information ratio | -0.04 |
Localiza Rent OTC Stock Return Volatility
Localiza Rent historical daily return volatility represents how much of Localiza Rent otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.2554% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Localiza Rent Volatility
Volatility is a rate at which the price of Localiza Rent 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 Localiza Rent may increase or decrease. In other words, similar to Localiza's beta indicator, it measures the risk of Localiza Rent and helps estimate the fluctuations that may happen in a short period of time. So if prices of Localiza Rent 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.Localiza Rent a Car S.A. engages in car rental and franchising activities. The company was founded in 1973 and is headquartered in Belo Horizonte, Brazil. Localiza Rent operates under Rental Leasing Services classification in the United States and is traded on OTC Exchange. It employs 12610 people.
Localiza Rent'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 Localiza OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Localiza Rent's price varies over time.
3 ways to utilize Localiza Rent's volatility to invest better
Higher Localiza Rent's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Localiza Rent A 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. Localiza Rent A 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 Localiza Rent A investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Localiza Rent'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 Localiza Rent's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Localiza Rent Investment Opportunity
Localiza Rent A has a volatility of 3.26 and is 4.29 times more volatile than Dow Jones Industrial. 28 percent of all equities and portfolios are less risky than Localiza Rent. You can use Localiza Rent A to protect your portfolios against small market fluctuations. The otc stock experiences a bearish sentiment with high volatility. Check odds of Localiza Rent to be traded at $7.15 in 90 days.Modest diversification
The correlation between Localiza Rent A and DJI is 0.29 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Localiza Rent A and DJI in the same portfolio, assuming nothing else is changed.
Localiza Rent Additional Risk Indicators
The analysis of Localiza Rent'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 Localiza Rent's investment and either accepting that risk or mitigating it. Along with some common measures of Localiza Rent otc 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 | 0.0034 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 2.37 | |||
| Coefficient Of Variation | (18,032) | |||
| Standard Deviation | 3.24 | |||
| Variance | 10.51 | |||
| Information Ratio | (0.04) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Localiza Rent 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 Localiza Rent 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. Localiza Rent'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, Localiza Rent'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 Localiza Rent A.
Additional Tools for Localiza OTC Stock Analysis
When running Localiza Rent's price analysis, check to measure Localiza Rent'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 Localiza Rent is operating at the current time. Most of Localiza Rent's value examination focuses on studying past and present price action to predict the probability of Localiza Rent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Localiza Rent's price. Additionally, you may evaluate how the addition of Localiza Rent to your portfolios can decrease your overall portfolio volatility.