Restaurant Brands International Volatility
| RSTRFDelisted Stock | USD 70.08 0.00 0.00% |
At this point, Restaurant Brands is very steady. Restaurant Brands maintains Sharpe Ratio (i.e., Efficiency) of 0.27, which implies the firm had a 0.27% return per unit of risk over the last 3 months. We have found nineteen technical indicators for Restaurant Brands, which you can use to evaluate the volatility of the company. Please check Restaurant Brands' Variance of 2.54, risk adjusted performance of 0.0173, and Coefficient Of Variation of 6326.18 to confirm if the risk estimate we provide is consistent with the expected return of 0.0245%. Key indicators related to Restaurant Brands' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Restaurant Brands Pink Sheet 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 Restaurant daily returns, and it is calculated using variance and standard deviation. We also use Restaurant's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Restaurant Brands volatility.
Restaurant |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Restaurant Brands 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 Restaurant Brands at lower prices to lower their average cost per share. Similarly, when the prices of Restaurant Brands' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Restaurant Brands Market Sensitivity And Downside Risk
Restaurant Brands' beta coefficient measures the volatility of Restaurant pink sheet 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 Restaurant pink sheet's returns against your selected market. In other words, Restaurant Brands's beta of 0.25 provides an investor with an approximation of how much risk Restaurant Brands pink sheet can potentially add to one of your existing portfolios. Restaurant Brands International exhibits very low volatility with skewness of -0.6 and kurtosis of 9.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Restaurant Brands' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Restaurant Brands' pink sheet 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 Restaurant Brands Demand TrendCheck current 90 days Restaurant Brands correlation with market (Dow Jones Industrial)Restaurant Beta |
Restaurant 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 | 0.0918 |
It is essential to understand the difference between upside risk (as represented by Restaurant Brands's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Restaurant Brands' daily returns or price. Since the actual investment returns on holding a position in restaurant pink sheet 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 Restaurant Brands.
Restaurant Brands Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Restaurant Brands pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Restaurant Brands' price changes. Investors will then calculate the volatility of Restaurant Brands' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Restaurant Brands' volatility:
Historical Volatility
This type of pink sheet volatility measures Restaurant Brands' fluctuations based on previous trends. It's commonly used to predict Restaurant Brands' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Restaurant Brands' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Restaurant Brands' to be redeemed at a future date.Transformation |
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Restaurant Brands Projected Return Density Against Market
Assuming the 90 days horizon Restaurant Brands has a beta of 0.2526 indicating as returns on the market go up, Restaurant Brands average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Restaurant Brands International 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 Restaurant Brands or Hotels, Restaurants & Leisure 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 Restaurant Brands' price will be affected by overall pink sheet 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 Restaurant pink sheet'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.
Restaurant Brands International 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 Restaurant Brands Price Volatility?
Several factors can influence a pink sheet'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.Restaurant Brands Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Restaurant Brands is 374.17. The daily returns are distributed with a variance of 0.01 and standard deviation of 0.09. The mean deviation of Restaurant Brands International is currently at 0.05. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.25 | |
σ | Overall volatility | 0.09 | |
Ir | Information ratio | -0.07 |
Restaurant Brands Pink Sheet Return Volatility
Restaurant Brands historical daily return volatility represents how much of Restaurant Brands pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 0.0918% 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 Restaurant Brands Volatility
Volatility is a rate at which the price of Restaurant Brands 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 Restaurant Brands may increase or decrease. In other words, similar to Restaurant's beta indicator, it measures the risk of Restaurant Brands and helps estimate the fluctuations that may happen in a short period of time. So if prices of Restaurant Brands 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.Restaurant Brands International Limited Partnership operates and franchises quick service restaurants in the United States and internationally. Restaurant Brands International Limited Partnership is a subsidiary of Restaurant Brands International Inc. Restaurant Brands operates under Restaurants classification in the United States and is traded on OTC Exchange. It employs 5700 people.
Restaurant Brands' 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 Restaurant Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Restaurant Brands' price varies over time.
3 ways to utilize Restaurant Brands' volatility to invest better
Higher Restaurant Brands' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Restaurant Brands 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. Restaurant Brands 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 Restaurant Brands investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Restaurant Brands' 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 Restaurant Brands' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Restaurant Brands Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.75 and is 8.33 times more volatile than Restaurant Brands International. Compared to the overall equity markets, volatility of historical daily returns of Restaurant Brands International is lower than 0 percent of all global equities and portfolios over the last 90 days. You can use Restaurant Brands International to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Restaurant Brands to be traded at $69.38 in 90 days.Average diversification
The correlation between Restaurant Brands Internationa and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Restaurant Brands Internationa and DJI in the same portfolio, assuming nothing else is changed.
Restaurant Brands Additional Risk Indicators
The analysis of Restaurant Brands' 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 Restaurant Brands' investment and either accepting that risk or mitigating it. Along with some common measures of Restaurant Brands pink sheet'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 | 0.0173 | |||
| Market Risk Adjusted Performance | 0.0702 | |||
| Mean Deviation | 0.6152 | |||
| Coefficient Of Variation | 6326.18 | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.54 | |||
| 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 pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Restaurant Brands 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 Restaurant Brands 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. Restaurant Brands' 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, Restaurant Brands' 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 Restaurant Brands International.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Consideration for investing in Restaurant Pink Sheet
If you are still planning to invest in Restaurant Brands check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Restaurant Brands' history and understand the potential risks before investing.
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