Oriental Rise Holdings Stock Volatility
| ORIS Stock | 7.28 0.54 8.01% |
Oriental Rise is very risky given 3 months investment horizon. Oriental Rise Holdings maintains Sharpe Ratio (i.e., Efficiency) of 0.11, which implies the firm had a 0.11% return per unit of risk over the last 3 months. We were able to collect and analyze data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.02% are justified by taking the suggested risk. Use Oriental Rise Semi Deviation of 7.72, coefficient of variation of 885.51, and Risk Adjusted Performance of 0.0957 to evaluate company specific risk that cannot be diversified away. Key indicators related to Oriental Rise's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Oriental Rise 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 Oriental daily returns, and it is calculated using variance and standard deviation. We also use Oriental's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Oriental Rise volatility.
Oriental |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Oriental Rise 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 Oriental Rise at lower prices. For example, an investor can purchase Oriental 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 Oriental Rise'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 Oriental Stock
Oriental Rise Market Sensitivity And Downside Risk
Oriental Rise's beta coefficient measures the volatility of Oriental 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 Oriental stock's returns against your selected market. In other words, Oriental Rise's beta of 0.58 provides an investor with an approximation of how much risk Oriental Rise stock can potentially add to one of your existing portfolios. Oriental Rise Holdings is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Oriental Rise's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Oriental Rise's 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 Oriental Rise Holdings Demand TrendCheck current 90 days Oriental Rise correlation with market (Dow Jones Industrial)Oriental Beta |
Oriental 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 | 9.22 |
It is essential to understand the difference between upside risk (as represented by Oriental Rise's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Oriental Rise's daily returns or price. Since the actual investment returns on holding a position in oriental 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 Oriental Rise.
Oriental Rise Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Oriental Rise stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Oriental Rise's price changes. Investors will then calculate the volatility of Oriental Rise'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 Oriental Rise's volatility:
Historical Volatility
This type of stock volatility measures Oriental Rise's fluctuations based on previous trends. It's commonly used to predict Oriental Rise'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 Oriental Rise'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 Oriental Rise'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 thirty-one. Oriental Rise Holdings 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.
Oriental Rise Projected Return Density Against Market
Given the investment horizon of 90 days Oriental Rise has a beta of 0.578 . This indicates as returns on the market go up, Oriental Rise average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Oriental Rise Holdings 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 Oriental Rise or Consumer Defensive 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 Oriental Rise'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 Oriental 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.
Oriental Rise Holdings has an alpha of 0.982, implying that it can generate a 0.98 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Oriental Rise 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.Oriental Rise Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Oriental Rise is 899.84. The daily returns are distributed with a variance of 84.99 and standard deviation of 9.22. The mean deviation of Oriental Rise Holdings is currently at 6.68. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.98 | |
β | Beta against Dow Jones | 0.58 | |
σ | Overall volatility | 9.22 | |
Ir | Information ratio | 0.1 |
Oriental Rise Stock Return Volatility
Oriental Rise historical daily return volatility represents how much of Oriental Rise stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 9.219% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Oriental Rise Volatility
Volatility is a rate at which the price of Oriental Rise 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 Oriental Rise may increase or decrease. In other words, similar to Oriental's beta indicator, it measures the risk of Oriental Rise and helps estimate the fluctuations that may happen in a short period of time. So if prices of Oriental Rise 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.3 ways to utilize Oriental Rise's volatility to invest better
Higher Oriental Rise's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Oriental Rise Holdings 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. Oriental Rise Holdings 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 Oriental Rise Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Oriental Rise'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 Oriental Rise's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Oriental Rise Investment Opportunity
Oriental Rise Holdings has a volatility of 9.22 and is 12.29 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Oriental Rise Holdings is higher than 82 percent of all global equities and portfolios over the last 90 days. You can use Oriental Rise Holdings to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Oriental Rise to be traded at 9.1 in 90 days.Significant diversification
The correlation between Oriental Rise Holdings and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Rise Holdings and DJI in the same portfolio, assuming nothing else is changed.
Oriental Rise Additional Risk Indicators
The analysis of Oriental Rise'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 Oriental Rise's investment and either accepting that risk or mitigating it. Along with some common measures of Oriental Rise 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 | 0.0957 | |||
| Market Risk Adjusted Performance | 1.82 | |||
| Mean Deviation | 6.87 | |||
| Semi Deviation | 7.72 | |||
| Downside Deviation | 8.37 | |||
| Coefficient Of Variation | 885.51 | |||
| Standard Deviation | 9.37 |
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.
Oriental Rise 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.
| GM vs. Oriental Rise | ||
| Bank of America vs. Oriental Rise | ||
| Ford vs. Oriental Rise | ||
| Alphabet vs. Oriental Rise | ||
| Visa vs. Oriental Rise | ||
| Citigroup vs. Oriental Rise | ||
| Microsoft vs. Oriental Rise | ||
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 Oriental Rise 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. Oriental Rise'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, Oriental Rise'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 Oriental Rise Holdings.
Additional Tools for Oriental Stock Analysis
When running Oriental Rise's price analysis, check to measure Oriental Rise'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 Oriental Rise is operating at the current time. Most of Oriental Rise's value examination focuses on studying past and present price action to predict the probability of Oriental Rise's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Oriental Rise's price. Additionally, you may evaluate how the addition of Oriental Rise to your portfolios can decrease your overall portfolio volatility.