Performance Food (Germany) Volatility
| P5F Stock | EUR 82.50 0.50 0.61% |
Performance Food appears to be very steady, given 3 months investment horizon. Performance Food maintains Sharpe Ratio (i.e., Efficiency) of 0.2, which implies the firm had a 0.2% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Performance Food, which you can use to evaluate the volatility of the company. Please evaluate Performance Food's Semi Deviation of 1.04, risk adjusted performance of 0.1501, and Coefficient Of Variation of 528.45 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Performance Food's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Performance Food 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 Performance daily returns, and it is calculated using variance and standard deviation. We also use Performance's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Performance Food volatility.
Performance |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Performance Food can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Performance Food at lower prices to lower their average cost per share. Similarly, when the prices of Performance Food's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Performance Stock
| 0.62 | SYY | Sysco | PairCorr |
| 0.68 | JEM | Jernimo Martins SGPS | PairCorr |
| 0.72 | JEM0 | JERONIMO MARTINS UNADR2 | PairCorr |
| 0.93 | UFH | US Foods Holding | PairCorr |
| 0.86 | 6BF | PF Bakkafrost | PairCorr |
Moving against Performance Stock
| 0.88 | ADC | AdCapital AG | PairCorr |
| 0.64 | 5TI | TINC Comm VA | PairCorr |
| 0.61 | DBPD | Xtrackers ShortDAX | PairCorr |
| 0.36 | KWE1 | Ring Energy | PairCorr |
| 0.32 | BUZ1 | Bunzl plc | PairCorr |
Performance Food Market Sensitivity And Downside Risk
Performance Food's beta coefficient measures the volatility of Performance 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 Performance stock's returns against your selected market. In other words, Performance Food's beta of 1.6 provides an investor with an approximation of how much risk Performance Food stock can potentially add to one of your existing portfolios. Performance Food Group has relatively low volatility with skewness of 1.76 and kurtosis of 8.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Performance Food'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 Performance Food'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 Performance Food Demand TrendCheck current 90 days Performance Food correlation with market (Dow Jones Industrial)Performance Beta |
Performance 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 | 1.69 |
It is essential to understand the difference between upside risk (as represented by Performance Food's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Performance Food's daily returns or price. Since the actual investment returns on holding a position in performance 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 Performance Food.
Performance Food Stock Volatility Analysis
Volatility refers to the frequency at which Performance Food stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Performance Food's price changes. Investors will then calculate the volatility of Performance Food'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 Performance Food's volatility:
Historical Volatility
This type of stock volatility measures Performance Food's fluctuations based on previous trends. It's commonly used to predict Performance Food'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 Performance Food'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 Performance Food'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. Performance Food 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.
Performance Food Projected Return Density Against Market
Assuming the 90 days horizon the stock has the beta coefficient of 1.601 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Performance Food 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 Performance Food 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 Performance Food'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 Performance 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.
Performance Food Group has an alpha of 0.1038, implying that it can generate a 0.1 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Performance Food 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.Performance Food Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Performance Food is 505.05. The daily returns are distributed with a variance of 2.85 and standard deviation of 1.69. The mean deviation of Performance Food Group is currently at 1.15. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.10 | |
β | Beta against Dow Jones | 1.60 | |
σ | Overall volatility | 1.69 | |
Ir | Information ratio | 0.11 |
Performance Food Stock Return Volatility
Performance Food historical daily return volatility represents how much of Performance Food stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.689% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Performance Food Volatility
Volatility is a rate at which the price of Performance Food 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 Performance Food may increase or decrease. In other words, similar to Performance's beta indicator, it measures the risk of Performance Food and helps estimate the fluctuations that may happen in a short period of time. So if prices of Performance Food 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.Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. Performance Food Group Company was founded in 2002 and is headquartered in Richmond, Virginia. Performance Food operates under Food Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15000 people.
Performance Food'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 Performance Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Performance Food's price varies over time.
3 ways to utilize Performance Food's volatility to invest better
Higher Performance Food's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Performance Food 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. Performance Food 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 Performance Food investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Performance Food'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 Performance Food's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Performance Food Investment Opportunity
Performance Food Group has a volatility of 1.69 and is 2.25 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Performance Food Group is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use Performance Food Group to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Performance Food to be traded at €90.75 in 90 days.Poor diversification
The correlation between Performance Food Group and DJI is 0.73 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and DJI in the same portfolio, assuming nothing else is changed.
Performance Food Additional Risk Indicators
The analysis of Performance Food'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 Performance Food's investment and either accepting that risk or mitigating it. Along with some common measures of Performance Food 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 | 0.1501 | |||
| Market Risk Adjusted Performance | 0.2025 | |||
| Mean Deviation | 1.15 | |||
| Semi Deviation | 1.04 | |||
| Downside Deviation | 1.53 | |||
| Coefficient Of Variation | 528.45 | |||
| Standard Deviation | 1.68 |
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.
Performance Food 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.
| Ford vs. Performance Food | ||
| Visa vs. Performance Food | ||
| Microsoft vs. Performance Food | ||
| GM vs. Performance Food | ||
| Alphabet vs. Performance Food | ||
| Salesforce vs. Performance Food | ||
| Citigroup vs. Performance Food | ||
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 Performance Food 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. Performance Food'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, Performance Food'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 Performance Food Group.
Complementary Tools for Performance Stock analysis
When running Performance Food's price analysis, check to measure Performance Food'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 Performance Food is operating at the current time. Most of Performance Food's value examination focuses on studying past and present price action to predict the probability of Performance Food's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Performance Food's price. Additionally, you may evaluate how the addition of Performance Food to your portfolios can decrease your overall portfolio volatility.
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |