MultiChoice Group Volatility
MultiChoice Group has Sharpe Ratio of -0.18, which conveys that the firm had a -0.18 % return per unit of risk over the last 3 months. MultiChoice exposes fifteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify MultiChoice's Mean Deviation of 0.8141, standard deviation of 1.97, and Risk Adjusted Performance of (0.04) to check out the risk estimate we provide.
Sharpe Ratio = -0.1824
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| Negative Returns | MCHOY |
Based on monthly moving average MultiChoice is not performing at its full potential. However, 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 MultiChoice by adding MultiChoice to a well-diversified portfolio.
Key indicators related to MultiChoice's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
MultiChoice Pink Sheet 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 MultiChoice daily returns, and it is calculated using variance and standard deviation. We also use MultiChoice's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of MultiChoice volatility.
MultiChoice |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as MultiChoice 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 MultiChoice at lower prices. For example, an investor can purchase MultiChoice 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 MultiChoice'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. Main indicators related to MultiChoice's market risk premium analysis include:
Beta 0.39 | Alpha (0.15) | Risk 19.69 | Sharpe Ratio (0.18) | Expected Return (3.59) |
Moving against MultiChoice Pink Sheet
| 0.55 | JNJ | Johnson Johnson | PairCorr |
| 0.38 | FOX | Fox Corp Class | PairCorr |
| 0.37 | WBD | Warner Bros Discovery | PairCorr |
MultiChoice Market Sensitivity And Downside Risk
MultiChoice's beta coefficient measures the volatility of MultiChoice pink sheet 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 MultiChoice pink sheet's returns against your selected market. In other words, MultiChoice's beta of 0.39 provides an investor with an approximation of how much risk MultiChoice pink sheet can potentially add to one of your existing portfolios. MultiChoice Group exhibits very low volatility with skewness of -2.13 and kurtosis of 16.2. You can indeed make money on MultiChoice instrument if you perfectly time your entry and exit. However, remember that penny pink sheets 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 MultiChoice Group Demand TrendCheck current 90 days MultiChoice correlation with market (Dow Jones Industrial)MultiChoice Volatility and Downside Risk
MultiChoice 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.
MultiChoice Group Pink Sheet Volatility Analysis
Volatility refers to the frequency at which MultiChoice pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with MultiChoice's price changes. Investors will then calculate the volatility of MultiChoice's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 MultiChoice's volatility:
Historical Volatility
This type of pink sheet volatility measures MultiChoice's fluctuations based on previous trends. It's commonly used to predict MultiChoice's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for MultiChoice's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on MultiChoice's to be redeemed at a future date.Transformation |
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MultiChoice Projected Return Density Against Market
Assuming the 90 days horizon MultiChoice has a beta of 0.3852 . This indicates as returns on the market go up, MultiChoice average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding MultiChoice Group will be expected to be much smaller as well.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 MultiChoice or Communication Services 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 MultiChoice's price will be affected by overall pink sheet 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 MultiChoice pink sheet'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.
MultiChoice Group 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 |
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What Drives a MultiChoice Price Volatility?
Several factors can influence a pink sheet'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.MultiChoice Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of MultiChoice is -548.15. The daily returns are distributed with a variance of 387.51 and standard deviation of 19.69. The mean deviation of MultiChoice Group is currently at 7.05. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.15 | |
β | Beta against Dow Jones | 0.39 | |
σ | Overall volatility | 19.69 | |
Ir | Information ratio | -0.1 |
MultiChoice Pink Sheet Return Volatility
MultiChoice historical daily return volatility represents how much of MultiChoice pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 19.6852% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7469% volatility on return distribution over the 90 days horizon. Performance |
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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 MultiChoice Pink Sheet performing well and MultiChoice 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 MultiChoice'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CYFWF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| TRKNF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| HKUOY | 0.76 | 0.15 | 0.00 | 1.03 | 0.00 | 1.81 | 15.62 | |||
| GMOYF | 0.58 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 13.92 | |||
| BATRA | 0.62 | (0.05) | 0.00 | (0.05) | 0.00 | 1.15 | 3.94 | |||
| SPKKY | 0.90 | (0.06) | 0.00 | (0.09) | 0.00 | 1.70 | 5.36 | |||
| TKOBF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| BGAOY | 1.94 | 0.08 | 0.00 | (1.72) | 2.68 | 6.21 | 17.91 | |||
| NZTCF | 2.47 | (0.08) | 0.00 | 0.58 | 0.00 | 5.56 | 41.30 | |||
| SMNUF | 0.63 | (0.30) | 0.00 | 0.94 | 0.00 | 0.00 | 21.05 |
About MultiChoice Volatility
Volatility is a rate at which the price of MultiChoice 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 MultiChoice may increase or decrease. In other words, similar to MultiChoice's beta indicator, it measures the risk of MultiChoice and helps estimate the fluctuations that may happen in a short period of time. So if prices of MultiChoice 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.MultiChoice Group Limited, through its subsidiaries, operates video-entertainment subscriber platforms in South Africa, rest of Africa, Europe, and internationally. The company was founded in 1995 and is headquartered in Randburg, South Africa. Multichoice operates under Entertainment classification in the United States and is traded on OTC Exchange. It employs 7204 people.
MultiChoice'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 MultiChoice Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much MultiChoice's price varies over time.
3 ways to utilize MultiChoice's volatility to invest better
Higher MultiChoice's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of MultiChoice Group 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. MultiChoice Group 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 MultiChoice Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in MultiChoice'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 MultiChoice's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
MultiChoice Investment Opportunity
MultiChoice Group has a volatility of 19.69 and is 26.25 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than MultiChoice. You can use MultiChoice Group to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of MultiChoice to be traded at $-0.8019 in 90 days.Very good diversification
The correlation between MultiChoice Group and DJI is -0.43 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding MultiChoice Group and DJI in the same portfolio, assuming nothing else is changed.
MultiChoice Additional Risk Indicators
The analysis of MultiChoice'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 MultiChoice's investment and either accepting that risk or mitigating it. Along with some common measures of MultiChoice pink sheet'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 | (0.31) | |||
| Mean Deviation | 0.8141 | |||
| Coefficient Of Variation | (1,725) | |||
| Standard Deviation | 1.97 | |||
| Variance | 3.87 | |||
| Information Ratio | (0.1) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
MultiChoice 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 MultiChoice 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. MultiChoice'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, MultiChoice'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 MultiChoice Group.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Consideration for investing in MultiChoice Pink Sheet
If you are still planning to invest in MultiChoice Group check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the MultiChoice's history and understand the potential risks before investing.
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