Marshall Machines (India) Volatility
| MARSHALL | 22.60 0.40 1.74% |
Marshall Machines has Sharpe Ratio of -0.22, which conveys that the firm had a -0.22% return per unit of risk over the last 3 months. Marshall Machines exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Marshall Machines' Standard Deviation of 3.23, mean deviation of 2.21, and Risk Adjusted Performance of (0.16) to check out the risk estimate we provide. Key indicators related to Marshall Machines' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Marshall Machines 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 Marshall daily returns, and it is calculated using variance and standard deviation. We also use Marshall's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Marshall Machines volatility.
Marshall |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Marshall Machines at lower prices. For example, an investor can purchase Marshall 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 together with Marshall Stock
| 0.86 | RELIANCE | Reliance Industries Split | PairCorr |
| 0.93 | TATAMOTORS | Tata Motors Limited | PairCorr |
| 0.88 | ONGC | Oil Natural Gas | PairCorr |
Moving against Marshall Stock
Marshall Machines Market Sensitivity And Downside Risk
Marshall Machines' beta coefficient measures the volatility of Marshall 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 Marshall stock's returns against your selected market. In other words, Marshall Machines's beta of 1.05 provides an investor with an approximation of how much risk Marshall Machines stock can potentially add to one of your existing portfolios. Marshall Machines Limited exhibits very low volatility with skewness of 0.16 and kurtosis of 2.51. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marshall Machines' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marshall Machines' 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 Marshall Machines Demand TrendCheck current 90 days Marshall Machines correlation with market (Dow Jones Industrial)Marshall Beta |
Marshall 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 | 3.29 |
It is essential to understand the difference between upside risk (as represented by Marshall Machines's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Marshall Machines' daily returns or price. Since the actual investment returns on holding a position in marshall 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 Marshall Machines.
Marshall Machines Stock Volatility Analysis
Volatility refers to the frequency at which Marshall Machines stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Marshall Machines' price changes. Investors will then calculate the volatility of Marshall Machines' 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 Marshall Machines' volatility:
Historical Volatility
This type of stock volatility measures Marshall Machines' fluctuations based on previous trends. It's commonly used to predict Marshall Machines' 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 Marshall Machines' 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 Marshall Machines' 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. Marshall Machines 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.
Marshall Machines Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.052 . This indicates Marshall Machines Limited market returns are very sensitive to returns on the market. As the market goes up or down, Marshall Machines is expected to follow.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 Marshall Machines 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 Marshall Machines' 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 Marshall 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.
Marshall Machines Limited 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 Marshall Machines 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.Marshall Machines Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Marshall Machines is -458.93. The daily returns are distributed with a variance of 10.86 and standard deviation of 3.29. The mean deviation of Marshall Machines Limited is currently at 2.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | -0.83 | |
β | Beta against Dow Jones | 1.05 | |
σ | Overall volatility | 3.29 | |
Ir | Information ratio | -0.26 |
Marshall Machines Stock Return Volatility
Marshall Machines historical daily return volatility represents how much of Marshall Machines stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.2949% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7252% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Marshall Machines Volatility
Volatility is a rate at which the price of Marshall Machines 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 Marshall Machines may increase or decrease. In other words, similar to Marshall's beta indicator, it measures the risk of Marshall Machines and helps estimate the fluctuations that may happen in a short period of time. So if prices of Marshall Machines 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 | 12.6 M | 7.3 M |
Marshall Machines' 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 Marshall Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Marshall Machines' price varies over time.
3 ways to utilize Marshall Machines' volatility to invest better
Higher Marshall Machines' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Marshall Machines 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. Marshall Machines 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 Marshall Machines investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Marshall Machines' 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 Marshall Machines' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Marshall Machines Investment Opportunity
Marshall Machines Limited has a volatility of 3.29 and is 4.51 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Marshall Machines Limited is lower than 29 percent of all global equities and portfolios over the last 90 days. You can use Marshall Machines Limited to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Marshall Machines to be traded at 21.92 in 90 days.Modest diversification
The correlation between Marshall Machines Limited and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Marshall Machines Limited and DJI in the same portfolio, assuming nothing else is changed.
Marshall Machines Additional Risk Indicators
The analysis of Marshall Machines' 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 Marshall Machines' investment and either accepting that risk or mitigating it. Along with some common measures of Marshall Machines 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 | (0.16) | |||
| Market Risk Adjusted Performance | (0.73) | |||
| Mean Deviation | 2.21 | |||
| Coefficient Of Variation | (422.20) | |||
| Standard Deviation | 3.23 | |||
| Variance | 10.41 | |||
| Information Ratio | (0.26) |
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.
Marshall Machines 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 Marshall Machines 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. Marshall Machines' 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, Marshall Machines' 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 Marshall Machines Limited.
Other Information on Investing in Marshall Stock
Marshall Machines financial ratios help investors to determine whether Marshall 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 Marshall with respect to the benefits of owning Marshall Machines security.