PC Connection (Germany) Volatility
| PCC Stock | EUR 49.80 1.00 2.05% |
PC Connection retains Efficiency (Sharpe Ratio) of -0.0146, which implies the company had a -0.0146 % return per unit of price deviation over the last 3 months. PC Connection exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check PC Connection's market risk adjusted performance of (0.24), and Information Ratio of (0.09) to confirm the risk estimate we provide.
Sharpe Ratio = -0.0146
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | PCC |
Estimated Market Risk
| 2.08 actual daily | 18 82% of assets are more volatile |
Expected Return
| -0.03 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.01 actual daily | 0 Most of other assets perform better |
Based on monthly moving average PC Connection 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 PC Connection by adding PC Connection to a well-diversified portfolio.
Key indicators related to PC Connection's volatility include:30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
PC Connection 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 PCC daily returns, and it is calculated using variance and standard deviation. We also use PCC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of PC Connection volatility.
PCC |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as PC Connection 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 PC Connection at lower prices to lower their average cost per share. Similarly, when the prices of PC Connection's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to PC Connection's market risk premium analysis include:
Beta 0.33 | Alpha (0.11) | Risk 2.08 | Sharpe Ratio (0.01) | Expected Return (0.03) |
Moving together with PCC Stock
| 0.71 | ARW | Arrow Electronics | PairCorr |
| 0.71 | PYA | Wayside Technology | PairCorr |
| 0.7 | LSPP | Chocoladefabriken Lindt | PairCorr |
Moving against PCC Stock
| 0.69 | S0V | Seaboard | PairCorr |
| 0.67 | PEZ | PERENNIAL ENERGY | PairCorr |
| 0.6 | MMPI | CHAMPION IRON | PairCorr |
| 0.54 | HBC1 | HSBC Holdings plc | PairCorr |
| 0.53 | HHX | HAMMONIA Schiffsholding | PairCorr |
| 0.5 | CFSL | Coca Cola FEMSA | PairCorr |
| 0.48 | 5IS | Information Services | PairCorr |
| 0.42 | DIO0 | CHRISTIAN DIOR ADR14EO2 | PairCorr |
| 0.35 | KLA | KLA TENCOR | PairCorr |
| 0.31 | OYC | Delta Air Lines | PairCorr |
PC Connection Market Sensitivity And Downside Risk
PC Connection's beta coefficient measures the volatility of PCC 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 PCC stock's returns against your selected market. In other words, PC Connection's beta of 0.33 provides an investor with an approximation of how much risk PC Connection stock can potentially add to one of your existing portfolios. PC Connection exhibits very low volatility with skewness of -0.27 and kurtosis of 1.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PC Connection'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 PC Connection'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 PC Connection Demand TrendCheck current 90 days PC Connection correlation with market (Dow Jones Industrial)PC Connection Volatility and Downside Risk
PCC 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.
PC Connection Stock Volatility Analysis
Volatility refers to the frequency at which PC Connection stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with PC Connection's price changes. Investors will then calculate the volatility of PC Connection'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 PC Connection's volatility:
Historical Volatility
This type of stock volatility measures PC Connection's fluctuations based on previous trends. It's commonly used to predict PC Connection'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 PC Connection'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 PC Connection'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. PC Connection 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.
PC Connection Projected Return Density Against Market
Assuming the 90 days horizon PC Connection has a beta of 0.3299 indicating as returns on the market go up, PC Connection average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding PC Connection 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 PC Connection or Technology 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 PC Connection'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 PCC 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.
PC Connection 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 PC Connection 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.PC Connection Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of PC Connection is -6838.25. The daily returns are distributed with a variance of 4.31 and standard deviation of 2.08. The mean deviation of PC Connection is currently at 1.51. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.69
α | Alpha over Dow Jones | -0.11 | |
β | Beta against Dow Jones | 0.33 | |
σ | Overall volatility | 2.08 | |
Ir | Information ratio | -0.09 |
PC Connection Stock Return Volatility
PC Connection historical daily return volatility represents how much of PC Connection stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.0768% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.6944% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
| 0.14 | -0.13 | 0.17 | 0.8 | 0.18 | I43 | ||
| 0.14 | -0.57 | 0.32 | 0.28 | -0.48 | PCHP | ||
| -0.13 | -0.57 | -0.27 | -0.13 | 0.34 | 4A0 | ||
| 0.17 | 0.32 | -0.27 | 0.19 | -0.55 | CI1A | ||
| 0.8 | 0.28 | -0.13 | 0.19 | 0.18 | FJZ | ||
| 0.18 | -0.48 | 0.34 | -0.55 | 0.18 | OTE | ||
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
| High negative correlations
|
Risk-Adjusted Indicators
There is a big difference between PCC Stock performing well and PC Connection 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 PC Connection'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| I43 | 1.51 | 0.21 | 0.01 | (0.15) | 1.76 | 3.95 | 11.57 | |||
| PCHP | 2.65 | (0.20) | 0.00 | (0.60) | 0.00 | 10.42 | 27.80 | |||
| 4A0 | 2.16 | 0.59 | 0.00 | 0.87 | 0.00 | 0.00 | 54.29 | |||
| CI1A | 2.18 | (0.02) | (0.02) | 0.04 | 3.08 | 4.38 | 16.45 | |||
| FJZ | 2.91 | 0.35 | 0.06 | (1.51) | 3.31 | 5.97 | 16.20 | |||
| OTE | 0.35 | 0.09 | (0.04) | (0.70) | 0.16 | 1.18 | 3.67 |
About PC Connection Volatility
Volatility is a rate at which the price of PC Connection 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 PC Connection may increase or decrease. In other words, similar to PCC's beta indicator, it measures the risk of PC Connection and helps estimate the fluctuations that may happen in a short period of time. So if prices of PC Connection 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.PC Connection, Inc., together with its subsidiaries, provides a range of information technology solutions. The company was founded in 1982 and is headquartered in Merrimack, New Hampshire. PC CONNECTION operates under Electronics Computer Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2598 people.
PC Connection'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 PCC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much PC Connection's price varies over time.
3 ways to utilize PC Connection's volatility to invest better
Higher PC Connection's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of PC Connection 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. PC Connection 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 PC Connection investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in PC Connection'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 PC Connection's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
PC Connection Investment Opportunity
PC Connection has a volatility of 2.08 and is 3.01 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of PC Connection is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use PC Connection to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of PC Connection to be traded at €59.76 in 90 days.Average diversification
The correlation between PC Connection and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PC Connection and DJI in the same portfolio, assuming nothing else is changed.
PC Connection Additional Risk Indicators
The analysis of PC Connection'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 PC Connection's investment and either accepting that risk or mitigating it. Along with some common measures of PC Connection 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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.24) | |||
| Mean Deviation | 1.51 | |||
| Coefficient Of Variation | (2,915) | |||
| Standard Deviation | 2.07 | |||
| Variance | 4.3 | |||
| Information Ratio | (0.09) |
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.
PC Connection 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.
| Microsoft vs. PC Connection | ||
| Citigroup vs. PC Connection | ||
| Alphabet vs. PC Connection | ||
| Ford vs. PC Connection | ||
| GM vs. PC Connection | ||
| Walker Dunlop vs. PC Connection | ||
| Visa vs. PC Connection |
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 PC Connection 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. PC Connection'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, PC Connection'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 PC Connection.
Complementary Tools for PCC Stock analysis
When running PC Connection's price analysis, check to measure PC Connection'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 PC Connection is operating at the current time. Most of PC Connection's value examination focuses on studying past and present price action to predict the probability of PC Connection's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PC Connection's price. Additionally, you may evaluate how the addition of PC Connection to your portfolios can decrease your overall portfolio volatility.
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |