Rectifier Technologies (Australia) Volatility
| RFT Stock | 0 0.00 0.00% |
Rectifier Technologies maintains Sharpe Ratio (i.e., Efficiency) of -0.0718, which implies the firm had a -0.0718 % return per unit of risk over the last 3 months. Rectifier Technologies exposes eighteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Rectifier Technologies' Coefficient Of Variation of (1,775), variance of 64.43, and Risk Adjusted Performance of (0.03) to confirm the risk estimate we provide.
Sharpe Ratio = -0.0718
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | RFT |
Estimated Market Risk
| 7.64 actual daily | 68 68% of assets are less volatile |
Expected Return
| -0.55 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.07 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Rectifier Technologies 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 Rectifier Technologies by adding Rectifier Technologies to a well-diversified portfolio.
Key indicators related to Rectifier Technologies' volatility include:30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Rectifier Technologies 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 Rectifier daily returns, and it is calculated using variance and standard deviation. We also use Rectifier's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Rectifier Technologies volatility.
Rectifier |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Rectifier Technologies 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 Rectifier Technologies at lower prices. For example, an investor can purchase Rectifier 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 Rectifier Technologies' 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 Rectifier Technologies' market risk premium analysis include:
Beta (0.94) | Alpha (0.37) | Risk 7.64 | Sharpe Ratio (0.07) | Expected Return (0.55) |
Moving together with Rectifier Stock
Moving against Rectifier Stock
| 0.69 | PMC | Platinum Capital | PairCorr |
| 0.58 | RIO | RIO Tinto | PairCorr |
| 0.55 | G11 | G11 Resources Split | PairCorr |
| 0.54 | KGN | Kogan | PairCorr |
| 0.43 | NEM | Newmont | PairCorr |
| 0.35 | BHP | BHP Group | PairCorr |
| 0.31 | ETM | Energy Transition | PairCorr |
Rectifier Technologies Market Sensitivity And Downside Risk
Rectifier Technologies' beta coefficient measures the volatility of Rectifier 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 Rectifier stock's returns against your selected market. In other words, Rectifier Technologies's beta of -0.94 provides an investor with an approximation of how much risk Rectifier Technologies stock can potentially add to one of your existing portfolios. Rectifier Technologies is displaying above-average volatility over the selected time horizon. Rectifier Technologies is a penny stock. Even though Rectifier Technologies may be a good instrument to invest, many penny stocks are speculative instruments that are subject to artificial stock promotions. Please make sure you fully understand upside and downside scenarios of investing in Rectifier Technologies or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings,sudden promotions and many other similar artificial hype indicators. We also encourage traders to check work history of company executives before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Rectifier instrument if you perfectly time your entry and exit. However, remember that penny stocks 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.
| α | -0.37 | β | -0.94 | Check current 90 days Rectifier Technologies correlation with market (Dow Jones Industrial)
Rectifier Technologies Volatility and Downside Risk
Rectifier 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.
Rectifier Technologies Stock Volatility Analysis
Volatility refers to the frequency at which Rectifier Technologies stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Rectifier Technologies' price changes. Investors will then calculate the volatility of Rectifier Technologies' 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 Rectifier Technologies' volatility:
Historical Volatility
This type of stock volatility measures Rectifier Technologies' fluctuations based on previous trends. It's commonly used to predict Rectifier Technologies' 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 Rectifier Technologies' 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 Rectifier Technologies' 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. Rectifier Technologies 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.
Rectifier Technologies Projected Return Density Against Market
Assuming the 90 days trading horizon Rectifier Technologies has a beta of -0.9393 indicatingMost 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 Rectifier Technologies or Electrical Equipment 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 Rectifier Technologies' 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 Rectifier 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.
Rectifier Technologies 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 Rectifier Technologies 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.Rectifier Technologies Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Rectifier Technologies is -1393.33. The daily returns are distributed with a variance of 58.38 and standard deviation of 7.64. The mean deviation of Rectifier Technologies is currently at 2.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.69
α | Alpha over Dow Jones | -0.37 | |
β | Beta against Dow Jones | -0.94 | |
σ | Overall volatility | 7.64 | |
Ir | Information ratio | -0.07 |
Rectifier Technologies Stock Return Volatility
Rectifier Technologies historical daily return volatility represents how much of Rectifier Technologies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 7.641% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.6944% 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 Rectifier Stock performing well and Rectifier Technologies 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 Rectifier Technologies' 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| ATM | 1.61 | (0.06) | 0.00 | 2.72 | 0.00 | 4.60 | 14.69 | |||
| CBA | 1.02 | (0.09) | 0.00 | 0.52 | 0.00 | 2.11 | 9.19 | |||
| WOW | 0.64 | 0.22 | 0.20 | (8.94) | 0.11 | 1.88 | 4.94 | |||
| AN3PI | 0.21 | (0.01) | (0.32) | (0.21) | 0.31 | 0.50 | 1.44 | |||
| AN3PJ | 0.18 | (0.01) | (0.36) | (0.05) | 0.25 | 0.38 | 1.51 | |||
| ANZ | 0.81 | 0.05 | (0.01) | 0.30 | 1.00 | 1.82 | 6.06 | |||
| NAB | 0.84 | (0.04) | (0.09) | (0.01) | 1.16 | 1.81 | 5.80 | |||
| WBC | 0.93 | 0.00 | (0.07) | 0.09 | 1.20 | 1.51 | 5.76 | |||
| RIO | 1.15 | 0.23 | 0.08 | 1.26 | 1.56 | 2.28 | 10.19 | |||
| BHP | 1.07 | 0.22 | 0.10 | 0.91 | 1.28 | 2.29 | 6.48 |
About Rectifier Technologies Volatility
Volatility is a rate at which the price of Rectifier Technologies 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 Rectifier Technologies may increase or decrease. In other words, similar to Rectifier's beta indicator, it measures the risk of Rectifier Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Rectifier Technologies 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 5.9 M | 6.1 M |
Rectifier Technologies' 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 Rectifier Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Rectifier Technologies' price varies over time.
3 ways to utilize Rectifier Technologies' volatility to invest better
Higher Rectifier Technologies' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Rectifier Technologies 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. Rectifier Technologies 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 Rectifier Technologies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Rectifier Technologies' 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 Rectifier Technologies' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Rectifier Technologies Investment Opportunity
Rectifier Technologies has a volatility of 7.64 and is 11.07 times more volatile than Dow Jones Industrial. 68 percent of all equities and portfolios are less risky than Rectifier Technologies. You can use Rectifier Technologies to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Rectifier Technologies to be traded at 0.003 in 90 days.Good diversification
The correlation between Rectifier Technologies and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Rectifier Technologies and DJI in the same portfolio, assuming nothing else is changed.
Rectifier Technologies Additional Risk Indicators
The analysis of Rectifier Technologies' 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 Rectifier Technologies' investment and either accepting that risk or mitigating it. Along with some common measures of Rectifier Technologies 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 | (0.03) | |||
| Market Risk Adjusted Performance | 0.502 | |||
| Mean Deviation | 3.31 | |||
| Coefficient Of Variation | (1,775) | |||
| Standard Deviation | 8.03 | |||
| Variance | 64.43 | |||
| Information Ratio | (0.07) |
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.
Rectifier Technologies 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 Rectifier Technologies 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. Rectifier Technologies' 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, Rectifier Technologies' 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 Rectifier Technologies.
Additional Tools for Rectifier Stock Analysis
When running Rectifier Technologies' price analysis, check to measure Rectifier Technologies' 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 Rectifier Technologies is operating at the current time. Most of Rectifier Technologies' value examination focuses on studying past and present price action to predict the probability of Rectifier Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rectifier Technologies' price. Additionally, you may evaluate how the addition of Rectifier Technologies to your portfolios can decrease your overall portfolio volatility.