Techstep ASA (Norway) Volatility
| TECH Stock | NOK 12.50 0.05 0.40% |
Techstep ASA owns Efficiency Ratio (i.e., Sharpe Ratio) of close to zero, which indicates the firm had a close to zero % return per unit of risk over the last 3 months. Techstep ASA exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Techstep ASA's Coefficient Of Variation of 35509.9, risk adjusted performance of 0.0088, and Semi Deviation of 2.04 to confirm the risk estimate we provide.
Sharpe Ratio = -1.0E-4
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| Negative Returns | TECH |
Estimated Market Risk
| 2.33 actual daily | 20 80% of assets are more volatile |
Expected Return
| 0.0 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| 0.0 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Techstep ASA 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 Techstep ASA by adding Techstep ASA to a well-diversified portfolio.
Key indicators related to Techstep ASA's volatility include:450 Days Market Risk | Chance Of Distress | 450 Days Economic Sensitivity |
Techstep ASA 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 Techstep daily returns, and it is calculated using variance and standard deviation. We also use Techstep's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Techstep ASA volatility.
Techstep |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Techstep ASA at lower prices. For example, an investor can purchase Techstep stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes. Main indicators related to Techstep ASA's market risk premium analysis include:
Beta 0.31 | Alpha (0.03) | Risk 2.33 | Sharpe Ratio (0.0001) | Expected Return (0.0002) |
Moving together with Techstep Stock
Moving against Techstep Stock
Techstep ASA Market Sensitivity And Downside Risk
Techstep ASA's beta coefficient measures the volatility of Techstep 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 Techstep stock's returns against your selected market. In other words, Techstep ASA's beta of 0.31 provides an investor with an approximation of how much risk Techstep ASA stock can potentially add to one of your existing portfolios. Techstep ASA currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of -0.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Techstep ASA'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 Techstep ASA'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 Techstep ASA Demand TrendCheck current 90 days Techstep ASA correlation with market (Dow Jones Industrial)Techstep ASA Volatility and Downside Risk
Techstep 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.
Techstep ASA Stock Volatility Analysis
Volatility refers to the frequency at which Techstep ASA stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Techstep ASA's price changes. Investors will then calculate the volatility of Techstep ASA'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 Techstep ASA's volatility:
Historical Volatility
This type of stock volatility measures Techstep ASA's fluctuations based on previous trends. It's commonly used to predict Techstep ASA'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 Techstep ASA'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 Techstep ASA'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. Techstep ASA 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.
Techstep ASA Projected Return Density Against Market
Assuming the 90 days trading horizon Techstep ASA has a beta of 0.3103 . This usually implies as returns on the market go up, Techstep ASA average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Techstep ASA 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 Techstep ASA or Technology 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 Techstep ASA'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 Techstep 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.
Techstep ASA 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 |
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What Drives a Techstep ASA 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.Techstep ASA Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Techstep ASA is -990884.42. The daily returns are distributed with a variance of 5.45 and standard deviation of 2.33. The mean deviation of Techstep ASA is currently at 1.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | -0.03 | |
β | Beta against Dow Jones | 0.31 | |
σ | Overall volatility | 2.33 | |
Ir | Information ratio | -0.03 |
Techstep ASA Stock Return Volatility
Techstep ASA historical daily return volatility represents how much of Techstep ASA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.3345% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7071% volatility on return distribution over the 90 days horizon. Performance |
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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 Techstep Stock performing well and Techstep ASA 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 Techstep ASA's 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| NEXT | 4.23 | (0.71) | 0.00 | 0.78 | 0.00 | 7.38 | 84.41 | |||
| ARR | 2.82 | 0.17 | 0.03 | (2.31) | 3.04 | 6.10 | 22.25 | |||
| CYVIZ | 1.08 | 0.04 | (0.01) | 0.28 | 1.39 | 2.22 | 8.32 | |||
| HUDL | 3.25 | 0.12 | 0.00 | (0.08) | 3.61 | 11.86 | 28.44 | |||
| IDEX | 4.27 | 1.61 | 0.38 | (3.84) | 3.02 | 16.19 | 42.91 | |||
| WSTEP | 1.30 | (0.19) | 0.00 | (0.57) | 0.00 | 2.79 | 7.99 | |||
| RECSI | 3.06 | (0.24) | 0.00 | 0.22 | 0.00 | 5.26 | 40.77 | |||
| HDLY | 3.23 | 0.44 | 0.07 | (7.77) | 3.66 | 7.93 | 23.36 | |||
| 5PG | 2.36 | 0.28 | 0.05 | (0.46) | 2.40 | 6.02 | 21.35 | |||
| ITERA | 1.35 | 0.08 | (0.02) | (0.08) | 1.42 | 3.37 | 9.14 |
About Techstep ASA Volatility
Volatility is a rate at which the price of Techstep ASA 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 Techstep ASA may increase or decrease. In other words, similar to Techstep's beta indicator, it measures the risk of Techstep ASA and helps estimate the fluctuations that may happen in a short period of time. So if prices of Techstep ASA 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.Techstep ASA provides digital workplace services in Norway and Sweden. The company also provides industry-leading cloud-based PBX solutions and enterprise mobility management services, including mobile security, system design, implementation, and mobile device management services. TECHSTEP ASA operates under Internet And Networking Services classification in Norway and is traded on Oslo Stock Exchange. It employs 223 people.
Techstep ASA'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 Techstep Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Techstep ASA's price varies over time.
3 ways to utilize Techstep ASA's volatility to invest better
Higher Techstep ASA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Techstep ASA 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. Techstep ASA 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 Techstep ASA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Techstep ASA'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 Techstep ASA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Techstep ASA Investment Opportunity
Techstep ASA has a volatility of 2.33 and is 3.28 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Techstep ASA is lower than 20 percent of all global equities and portfolios over the last 90 days. You can use Techstep ASA to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Techstep ASA to be traded at 12.38 in 90 days.Average diversification
The correlation between Techstep ASA and DJI is 0.1 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Techstep ASA and DJI in the same portfolio, assuming nothing else is changed.
Techstep ASA Additional Risk Indicators
The analysis of Techstep ASA'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 Techstep ASA's investment and either accepting that risk or mitigating it. Along with some common measures of Techstep ASA 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 | 0.0088 | |||
| Market Risk Adjusted Performance | (0) | |||
| Mean Deviation | 1.66 | |||
| Semi Deviation | 2.04 | |||
| Downside Deviation | 2.4 | |||
| Coefficient Of Variation | 35509.9 | |||
| Standard Deviation | 2.23 |
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.
Techstep ASA 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 Techstep ASA 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. Techstep ASA'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, Techstep ASA'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 Techstep ASA.
Other Information on Investing in Techstep Stock
Techstep ASA financial ratios help investors to determine whether Techstep Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Techstep with respect to the benefits of owning Techstep ASA security.