Sanlam Ltd Pk Stock Volatility
| SLLDY Stock | USD 8.92 0.01 0.11% |
Sanlam Ltd PK owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.1, which indicates the firm had a -0.1 % return per unit of risk over the last 3 months. Sanlam Ltd PK exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Sanlam's Coefficient Of Variation of (1,236), variance of 3.6, and Risk Adjusted Performance of (0.06) to confirm the risk estimate we provide. Key indicators related to Sanlam's volatility include:
150 Days Market Risk | Chance Of Distress | 150 Days Economic Sensitivity |
Sanlam 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 Sanlam daily returns, and it is calculated using variance and standard deviation. We also use Sanlam's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sanlam volatility.
Sanlam |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sanlam 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 Sanlam at lower prices. For example, an investor can purchase Sanlam 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 Sanlam'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 Sanlam Pink Sheet
| 0.76 | PNGAY | Ping An Insurance Normal Trading | PairCorr |
| 0.71 | PIAIF | Ping An Insurance | PairCorr |
| 0.75 | AAGIY | AIA Group | PairCorr |
| 0.72 | AAIGF | AIA Group | PairCorr |
| 0.75 | CILJF | China Life Insurance | PairCorr |
Moving against Sanlam Pink Sheet
| 0.54 | AMZN | Amazon Inc Earnings Call This Week | PairCorr |
| 0.45 | WMT | Walmart Aggressive Push | PairCorr |
| 0.44 | VWAPY | Volkswagen AG Pref | PairCorr |
| 0.37 | VLKAF | Volkswagen AG | PairCorr |
| 0.37 | VLKPF | Volkswagen AG VZO | PairCorr |
| 0.36 | VWAGY | Volkswagen AG 110 | PairCorr |
Sanlam Market Sensitivity And Downside Risk
Sanlam's beta coefficient measures the volatility of Sanlam 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 Sanlam pink sheet's returns against your selected market. In other words, Sanlam's beta of 0.68 provides an investor with an approximation of how much risk Sanlam pink sheet can potentially add to one of your existing portfolios. Sanlam Ltd PK exhibits very low volatility with skewness of -0.58 and kurtosis of 1.78. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sanlam's 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 Sanlam's 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 Sanlam Ltd PK Demand TrendCheck current 90 days Sanlam correlation with market (Dow Jones Industrial)Sanlam Beta |
Sanlam 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 | 1.95 |
It is essential to understand the difference between upside risk (as represented by Sanlam's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sanlam's daily returns or price. Since the actual investment returns on holding a position in sanlam 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 Sanlam.
Sanlam Ltd PK Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Sanlam pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sanlam's price changes. Investors will then calculate the volatility of Sanlam's 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 Sanlam's volatility:
Historical Volatility
This type of pink sheet volatility measures Sanlam's fluctuations based on previous trends. It's commonly used to predict Sanlam's 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 Sanlam's 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 Sanlam'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. Sanlam Ltd PK 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.
Sanlam Projected Return Density Against Market
Assuming the 90 days horizon Sanlam has a beta of 0.6776 . This usually implies as returns on the market go up, Sanlam average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Sanlam Ltd PK 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 Sanlam or Financial Services 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 Sanlam's 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 Sanlam 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.
Sanlam Ltd PK 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 Sanlam 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.Sanlam Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Sanlam is -967.53. The daily returns are distributed with a variance of 3.8 and standard deviation of 1.95. The mean deviation of Sanlam Ltd PK is currently at 1.43. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | -0.22 | |
β | Beta against Dow Jones | 0.68 | |
σ | Overall volatility | 1.95 | |
Ir | Information ratio | -0.13 |
Sanlam Pink Sheet Return Volatility
Sanlam historical daily return volatility represents how much of Sanlam pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.9495% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8521% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sanlam Volatility
Volatility is a rate at which the price of Sanlam 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 Sanlam may increase or decrease. In other words, similar to Sanlam's beta indicator, it measures the risk of Sanlam and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sanlam 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.Sanlam Limited provides various financial solutions to individual, business, and institutional clients in South Africa, rest of Africa, and internationally. The company was founded in 1918 and is headquartered in Bellville, South Africa. Sanlam operates under InsuranceLife classification in the United States and is traded on OTC Exchange. It employs 21180 people.
Sanlam'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 Sanlam Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sanlam's price varies over time.
3 ways to utilize Sanlam's volatility to invest better
Higher Sanlam's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sanlam Ltd PK 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. Sanlam Ltd PK 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 Sanlam Ltd PK investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sanlam'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 Sanlam's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sanlam Investment Opportunity
Sanlam Ltd PK has a volatility of 1.95 and is 2.29 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than Sanlam. You can use Sanlam Ltd PK to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Sanlam to be traded at $8.83 in 90 days.Weak diversification
The correlation between Sanlam Ltd PK and DJI is 0.3 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sanlam Ltd PK and DJI in the same portfolio, assuming nothing else is changed.
Sanlam Additional Risk Indicators
The analysis of Sanlam'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 Sanlam's investment and either accepting that risk or mitigating it. Along with some common measures of Sanlam 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 | (0.06) | |||
| Market Risk Adjusted Performance | (0.23) | |||
| Mean Deviation | 1.38 | |||
| Coefficient Of Variation | (1,236) | |||
| Standard Deviation | 1.9 | |||
| Variance | 3.6 | |||
| Information Ratio | (0.13) |
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.
Sanlam 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.
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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 Sanlam 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. Sanlam'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, Sanlam'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 Sanlam Ltd PK.
Additional Tools for Sanlam Pink Sheet Analysis
When running Sanlam's price analysis, check to measure Sanlam'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 Sanlam is operating at the current time. Most of Sanlam's value examination focuses on studying past and present price action to predict the probability of Sanlam's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sanlam's price. Additionally, you may evaluate how the addition of Sanlam to your portfolios can decrease your overall portfolio volatility.