RaySearch Laboratories (Sweden) Volatility
| RAY-B Stock | SEK 180.60 1.60 0.89% |
RaySearch Laboratories maintains Sharpe Ratio (i.e., Efficiency) of -0.21, which implies the firm had a -0.21 % return per unit of risk over the last 3 months. RaySearch Laboratories exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check RaySearch Laboratories' Risk Adjusted Performance of (0.06), variance of 11.94, and Coefficient Of Variation of (1,135) to confirm the risk estimate we provide.
Sharpe Ratio = -0.2143
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| Negative Returns | RAY-B |
Estimated Market Risk
| 1.78 actual daily | 15 85% of assets are more volatile |
Expected Return
| -0.38 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.21 actual daily | 0 Most of other assets perform better |
Based on monthly moving average RaySearch Laboratories 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 RaySearch Laboratories by adding RaySearch Laboratories to a well-diversified portfolio.
Key indicators related to RaySearch Laboratories' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
RaySearch Laboratories 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 RaySearch daily returns, and it is calculated using variance and standard deviation. We also use RaySearch's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of RaySearch Laboratories volatility.
RaySearch |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as RaySearch Laboratories 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 RaySearch Laboratories at lower prices. For example, an investor can purchase RaySearch 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 RaySearch Laboratories' 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 RaySearch Laboratories' market risk premium analysis include:
Beta 0.3 | Alpha (0.34) | Risk 1.78 | Sharpe Ratio (0.21) | Expected Return (0.38) |
Moving together with RaySearch Stock
Moving against RaySearch Stock
| 0.83 | VPLAY-B | Viaplay Group AB | PairCorr |
| 0.79 | MAHA-A | Maha Energy AB | PairCorr |
| 0.77 | ABB | ABB | PairCorr |
| 0.74 | 8TRA | Traton SE | PairCorr |
| 0.74 | BOL | Boliden AB | PairCorr |
| 0.71 | ORES | Investment AB Oresund | PairCorr |
| 0.66 | BIOG-B | BioGaia AB Earnings Call This Week | PairCorr |
| 0.65 | TAGM-B | TagMaster AB Series | PairCorr |
| 0.64 | ARCT | Arctic Gold Publ | PairCorr |
| 0.55 | TELLUS | Tellusgruppen AB | PairCorr |
RaySearch Laboratories Market Sensitivity And Downside Risk
RaySearch Laboratories' beta coefficient measures the volatility of RaySearch 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 RaySearch stock's returns against your selected market. In other words, RaySearch Laboratories's beta of 0.3 provides an investor with an approximation of how much risk RaySearch Laboratories stock can potentially add to one of your existing portfolios. RaySearch Laboratories AB exhibits very low volatility with skewness of 3.83 and kurtosis of 26.4. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure RaySearch Laboratories' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact RaySearch Laboratories' 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.
| α | -0.34 | β | 0.30 | Check current 90 days RaySearch Laboratories correlation with market (Dow Jones Industrial)
RaySearch Laboratories Volatility and Downside Risk
RaySearch 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.
RaySearch Laboratories Stock Volatility Analysis
Volatility refers to the frequency at which RaySearch Laboratories stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with RaySearch Laboratories' price changes. Investors will then calculate the volatility of RaySearch Laboratories' 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 RaySearch Laboratories' volatility:
Historical Volatility
This type of stock volatility measures RaySearch Laboratories' fluctuations based on previous trends. It's commonly used to predict RaySearch Laboratories' 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 RaySearch Laboratories' 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 RaySearch Laboratories' 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. RaySearch Laboratories 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.
RaySearch Laboratories Projected Return Density Against Market
Assuming the 90 days trading horizon RaySearch Laboratories has a beta of 0.3018 indicating as returns on the market go up, RaySearch Laboratories average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding RaySearch Laboratories AB 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 RaySearch Laboratories 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 RaySearch Laboratories' 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 RaySearch 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.
Predicted Return Density |
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What Drives a RaySearch Laboratories 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.RaySearch Laboratories Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of RaySearch Laboratories is -466.66. The daily returns are distributed with a variance of 3.18 and standard deviation of 1.78. The mean deviation of RaySearch Laboratories AB is currently at 1.45. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | -0.34 | |
β | Beta against Dow Jones | 0.30 | |
σ | Overall volatility | 1.78 | |
Ir | Information ratio | -0.11 |
RaySearch Laboratories Stock Return Volatility
RaySearch Laboratories historical daily return volatility represents how much of RaySearch Laboratories stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.7843% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8004% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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 RaySearch Stock performing well and RaySearch Laboratories 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 RaySearch Laboratories' 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| ARJO-B | 1.10 | (0.19) | 0.00 | (0.64) | 0.00 | 2.16 | 13.25 | |||
| SUS | 3.11 | (1.48) | 0.00 | (0.83) | 0.00 | 3.65 | 63.54 | |||
| SYNSAM | 1.17 | 0.12 | 0.03 | 58.58 | 1.34 | 3.48 | 8.89 | |||
| BIOG-B | 1.14 | 0.13 | 0.03 | (0.97) | 1.38 | 2.83 | 8.52 | |||
| SECARE | 2.06 | (0.63) | 0.00 | (0.74) | 0.00 | 3.03 | 35.48 | |||
| XVIVO | 2.65 | 0.17 | 0.02 | (0.32) | 2.66 | 6.57 | 13.96 | |||
| CEVI | 1.84 | (0.14) | 0.00 | (6.38) | 0.00 | 3.82 | 10.09 | |||
| AMBEA | 1.16 | 0.09 | 0.02 | 0.49 | 1.65 | 2.43 | 8.94 | |||
| CARA | 1.35 | (0.22) | 0.00 | 1.84 | 0.00 | 2.85 | 7.52 | |||
| ATT | 1.09 | 0.35 | 0.27 | (1.15) | 0.57 | 2.58 | 4.67 |
About RaySearch Laboratories Volatility
Volatility is a rate at which the price of RaySearch Laboratories 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 RaySearch Laboratories may increase or decrease. In other words, similar to RaySearch's beta indicator, it measures the risk of RaySearch Laboratories and helps estimate the fluctuations that may happen in a short period of time. So if prices of RaySearch Laboratories 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.RaySearch Laboratories AB operates as a medical technology company that develops software solutions for cancer treatment in North America, Asia, Europe, and internationally. The company was founded in 2000 and is headquartered in Stockholm, Sweden. RaySearch Laboratories operates under Medical Equipment classification in Sweden and is traded on Stockholm Stock Exchange. It employs 307 people.
RaySearch Laboratories' 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 RaySearch Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much RaySearch Laboratories' price varies over time.
3 ways to utilize RaySearch Laboratories' volatility to invest better
Higher RaySearch Laboratories' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of RaySearch Laboratories 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. RaySearch Laboratories 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 RaySearch Laboratories investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in RaySearch Laboratories' 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 RaySearch Laboratories' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
RaySearch Laboratories Investment Opportunity
RaySearch Laboratories AB has a volatility of 1.78 and is 2.23 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of RaySearch Laboratories AB is lower than 16 percent of all global equities and portfolios over the last 90 days. You can use RaySearch Laboratories AB to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of RaySearch Laboratories to be traded at kr198.66 in 90 days.Very good diversification
The correlation between RaySearch Laboratories AB and DJI is -0.49 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding RaySearch Laboratories AB and DJI in the same portfolio, assuming nothing else is changed.
RaySearch Laboratories Additional Risk Indicators
The analysis of RaySearch Laboratories' 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 RaySearch Laboratories' investment and either accepting that risk or mitigating it. Along with some common measures of RaySearch Laboratories 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 | (0.06) | |||
| Market Risk Adjusted Performance | (1.03) | |||
| Mean Deviation | 1.88 | |||
| Coefficient Of Variation | (1,135) | |||
| Standard Deviation | 3.46 | |||
| Variance | 11.94 | |||
| Information Ratio | (0.11) |
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.
RaySearch Laboratories 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 RaySearch Laboratories 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. RaySearch Laboratories' 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, RaySearch Laboratories' 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 RaySearch Laboratories AB.
Additional Tools for RaySearch Stock Analysis
When running RaySearch Laboratories' price analysis, check to measure RaySearch Laboratories' 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 RaySearch Laboratories is operating at the current time. Most of RaySearch Laboratories' value examination focuses on studying past and present price action to predict the probability of RaySearch Laboratories' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move RaySearch Laboratories' price. Additionally, you may evaluate how the addition of RaySearch Laboratories to your portfolios can decrease your overall portfolio volatility.