Safello Group (Sweden) Volatility
| SFL Stock | 6.02 0.26 4.51% |
Safello Group appears to be out of control, given 3 months investment horizon. Safello Group AB owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.14, which indicates the firm had a 0.14% return per unit of risk over the last 3 months. By inspecting Safello Group's technical indicators, you can evaluate if the expected return of 0.72% is justified by implied risk. Please review Safello Group's Coefficient Of Variation of 694.72, risk adjusted performance of 0.1186, and Semi Deviation of 3.75 to confirm if our risk estimates are consistent with your expectations.
Safello |
Safello Group 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 Safello daily returns, and it is calculated using variance and standard deviation. We also use Safello's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Safello Group volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Safello Group 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 Safello Group at lower prices. For example, an investor can purchase Safello 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 Safello Group's 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.
Moving together with Safello Stock
Moving against Safello Stock
| 0.78 | AZN | AstraZeneca PLC | PairCorr |
| 0.59 | HEXA-B | Hexagon AB | PairCorr |
| 0.41 | ATCO-B | Atlas Copco AB | PairCorr |
| 0.4 | ATCO-A | Atlas Copco AB | PairCorr |
| 0.31 | INVE-A | Investor AB ser | PairCorr |
Safello Group Market Sensitivity And Downside Risk
Safello Group's beta coefficient measures the volatility of Safello 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 Safello stock's returns against your selected market. In other words, Safello Group's beta of 0.32 provides an investor with an approximation of how much risk Safello Group stock can potentially add to one of your existing portfolios. Safello Group AB shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Safello Group'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 Safello Group'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 Safello Group AB Demand TrendCheck current 90 days Safello Group correlation with market (Dow Jones Industrial)Safello Beta |
Safello 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 | 5.29 |
It is essential to understand the difference between upside risk (as represented by Safello Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Safello Group's daily returns or price. Since the actual investment returns on holding a position in safello 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 Safello Group.
Safello Group AB Stock Volatility Analysis
Volatility refers to the frequency at which Safello Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Safello Group's price changes. Investors will then calculate the volatility of Safello Group'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 Safello Group's volatility:
Historical Volatility
This type of stock volatility measures Safello Group's fluctuations based on previous trends. It's commonly used to predict Safello Group'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 Safello Group'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 Safello Group'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. Safello Group AB 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.
Safello Group Projected Return Density Against Market
Assuming the 90 days trading horizon Safello Group has a beta of 0.3163 . This usually implies as returns on the market go up, Safello Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Safello Group 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 Safello Group or Safello 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 Safello Group'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 Safello 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.
Safello Group AB has an alpha of 0.7115, implying that it can generate a 0.71 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Safello Group 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.Safello Group Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Safello Group is 738.1. The daily returns are distributed with a variance of 27.94 and standard deviation of 5.29. The mean deviation of Safello Group AB is currently at 3.86. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.71 | |
β | Beta against Dow Jones | 0.32 | |
σ | Overall volatility | 5.29 | |
Ir | Information ratio | 0.12 |
Safello Group Stock Return Volatility
Safello Group historical daily return volatility represents how much of Safello Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 5.2861% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Safello Group Investment Opportunity
Safello Group AB has a volatility of 5.29 and is 7.05 times more volatile than Dow Jones Industrial. 47 percent of all equities and portfolios are less risky than Safello Group. You can use Safello Group AB to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Safello Group to be traded at 7.53 in 90 days.Significant diversification
The correlation between Safello Group AB and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Safello Group AB and DJI in the same portfolio, assuming nothing else is changed.
Safello Group Additional Risk Indicators
The analysis of Safello Group'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 Safello Group's investment and either accepting that risk or mitigating it. Along with some common measures of Safello Group 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 | 0.1186 | |||
| Market Risk Adjusted Performance | 2.39 | |||
| Mean Deviation | 3.89 | |||
| Semi Deviation | 3.75 | |||
| Downside Deviation | 4.23 | |||
| Coefficient Of Variation | 694.72 | |||
| Standard Deviation | 5.29 |
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.
Safello Group 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 Safello Group 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. Safello Group'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, Safello Group'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 Safello Group AB.
Additional Tools for Safello Stock Analysis
When running Safello Group's price analysis, check to measure Safello Group'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 Safello Group is operating at the current time. Most of Safello Group's value examination focuses on studying past and present price action to predict the probability of Safello Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Safello Group's price. Additionally, you may evaluate how the addition of Safello Group to your portfolios can decrease your overall portfolio volatility.