Swiss Re Ag Stock Volatility
| SSREF Stock | USD 142.50 1.82 1.29% |
At this point, Swiss Re is very steady. Swiss Re AG owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0458, which indicates the firm had a 0.0458% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Swiss Re AG, which you can use to evaluate the volatility of the company. Please validate Swiss Re's Risk Adjusted Performance of 0.0923, semi deviation of 0.7744, and Coefficient Of Variation of 880.04 to confirm if the risk estimate we provide is consistent with the expected return of 0.0649%. Key indicators related to Swiss Re's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Swiss Re 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 Swiss daily returns, and it is calculated using variance and standard deviation. We also use Swiss's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Swiss Re volatility.
Swiss |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Swiss Re 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 Swiss Re at lower prices to lower their average cost per share. Similarly, when the prices of Swiss Re's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Swiss Pink Sheet
| 0.83 | SSREY | Swiss Re Normal Trading | PairCorr |
Moving against Swiss Pink Sheet
Swiss Re Market Sensitivity And Downside Risk
Swiss Re's beta coefficient measures the volatility of Swiss 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 Swiss pink sheet's returns against your selected market. In other words, Swiss Re's beta of 0.31 provides an investor with an approximation of how much risk Swiss Re pink sheet can potentially add to one of your existing portfolios. Swiss Re AG currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Swiss Re'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 Swiss Re'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 Swiss Re AG Demand TrendCheck current 90 days Swiss Re correlation with market (Dow Jones Industrial)Swiss Beta |
Swiss 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 | 1.42 |
It is essential to understand the difference between upside risk (as represented by Swiss Re's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Swiss Re's daily returns or price. Since the actual investment returns on holding a position in swiss 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 Swiss Re.
Swiss Re AG Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Swiss Re pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Swiss Re's price changes. Investors will then calculate the volatility of Swiss Re'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 Swiss Re's volatility:
Historical Volatility
This type of pink sheet volatility measures Swiss Re's fluctuations based on previous trends. It's commonly used to predict Swiss Re'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 Swiss Re'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 Swiss Re'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. Swiss Re AG 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.
Swiss Re Projected Return Density Against Market
Assuming the 90 days horizon Swiss Re has a beta of 0.3058 . This usually implies as returns on the market go up, Swiss Re average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Swiss Re AG 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 Swiss Re 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 Swiss Re'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 Swiss 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.
Swiss Re AG has an alpha of 0.1569, implying that it can generate a 0.16 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Swiss Re 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.Swiss Re Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Swiss Re is 2184.86. The daily returns are distributed with a variance of 2.01 and standard deviation of 1.42. The mean deviation of Swiss Re AG is currently at 0.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.16 | |
β | Beta against Dow Jones | 0.31 | |
σ | Overall volatility | 1.42 | |
Ir | Information ratio | 0.05 |
Swiss Re Pink Sheet Return Volatility
Swiss Re historical daily return volatility represents how much of Swiss Re pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.4176% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Swiss Re Volatility
Volatility is a rate at which the price of Swiss Re 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 Swiss Re may increase or decrease. In other words, similar to Swiss's beta indicator, it measures the risk of Swiss Re and helps estimate the fluctuations that may happen in a short period of time. So if prices of Swiss Re 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.Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland. Swiss Re is traded on OTC Exchange in the United States.
Swiss Re'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 Swiss Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Swiss Re's price varies over time.
3 ways to utilize Swiss Re's volatility to invest better
Higher Swiss Re's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Swiss Re AG 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. Swiss Re AG 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 Swiss Re AG investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Swiss Re'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 Swiss Re's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Swiss Re Investment Opportunity
Swiss Re AG has a volatility of 1.42 and is 1.84 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Swiss Re AG is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Swiss Re AG to enhance the returns of your portfolios. The pink sheet experiences a large bullish trend. Check odds of Swiss Re to be traded at $156.75 in 90 days.Average diversification
The correlation between Swiss Re AG and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Re AG and DJI in the same portfolio, assuming nothing else is changed.
Swiss Re Additional Risk Indicators
The analysis of Swiss Re'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 Swiss Re's investment and either accepting that risk or mitigating it. Along with some common measures of Swiss Re 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 | 0.0923 | |||
| Market Risk Adjusted Performance | 0.6225 | |||
| Mean Deviation | 0.7052 | |||
| Semi Deviation | 0.7744 | |||
| Downside Deviation | 2.73 | |||
| Coefficient Of Variation | 880.04 | |||
| Standard Deviation | 1.74 |
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.
Swiss Re 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 Swiss Re 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. Swiss Re'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, Swiss Re'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 Swiss Re AG.
Complementary Tools for Swiss Pink Sheet analysis
When running Swiss Re's price analysis, check to measure Swiss Re'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 Swiss Re is operating at the current time. Most of Swiss Re's value examination focuses on studying past and present price action to predict the probability of Swiss Re's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Swiss Re's price. Additionally, you may evaluate how the addition of Swiss Re to your portfolios can decrease your overall portfolio volatility.
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