Takara Bio (Germany) Volatility
| TF2 Stock | EUR 5.40 1.14 26.76% |
Takara Bio appears to be moderately volatile, given 3 months investment horizon. Takara Bio owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.13, which indicates the firm had a 0.13 % return per unit of risk over the last 3 months. By inspecting Takara Bio's technical indicators, you can evaluate if the expected return of 0.5% is justified by implied risk. Please review Takara Bio's Coefficient Of Variation of 1596.91, risk adjusted performance of 0.0585, and Semi Deviation of 2.23 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.126
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Estimated Market Risk
| 3.93 actual daily | 35 65% of assets are more volatile |
Expected Return
| 0.5 actual daily | 10 90% of assets have higher returns |
Risk-Adjusted Return
| 0.13 actual daily | 10 90% of assets perform better |
Based on monthly moving average Takara Bio is performing at about 10% of its full potential. 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 Takara Bio by adding it to a well-diversified portfolio.
Key indicators related to Takara Bio's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Takara Bio 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 Takara daily returns, and it is calculated using variance and standard deviation. We also use Takara's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Takara Bio volatility.
Takara |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Takara Bio 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 Takara Bio at lower prices to lower their average cost per share. Similarly, when the prices of Takara Bio's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to Takara Bio's market risk premium analysis include:
Beta 0.19 | Alpha 0.23 | Risk 3.93 | Sharpe Ratio 0.13 | Expected Return 0.5 |
Moving against Takara Stock
| 0.44 | IMK | IMAX China Holding Earnings Call Tomorrow | PairCorr |
| 0.39 | UN0 | Uniper SE | PairCorr |
| 0.33 | SAB | Sonic Healthcare Earnings Call This Week | PairCorr |
| 0.33 | ALV | Allianz SE | PairCorr |
Takara Bio Market Sensitivity And Downside Risk
Takara Bio's beta coefficient measures the volatility of Takara 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 Takara stock's returns against your selected market. In other words, Takara Bio's beta of 0.19 provides an investor with an approximation of how much risk Takara Bio stock can potentially add to one of your existing portfolios. Takara Bio currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.23. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Takara Bio'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 Takara Bio'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 Takara Bio Demand TrendCheck current 90 days Takara Bio correlation with market (Dow Jones Industrial)Takara Bio Volatility and Downside Risk
Takara 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.
Takara Bio Stock Volatility Analysis
Volatility refers to the frequency at which Takara Bio stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Takara Bio's price changes. Investors will then calculate the volatility of Takara Bio'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 Takara Bio's volatility:
Historical Volatility
This type of stock volatility measures Takara Bio's fluctuations based on previous trends. It's commonly used to predict Takara Bio'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 Takara Bio'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 Takara Bio'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. Takara Bio 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.
Takara Bio Projected Return Density Against Market
Assuming the 90 days horizon Takara Bio has a beta of 0.1867 . This usually implies as returns on the market go up, Takara Bio average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Takara Bio 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 Takara Bio or Biotechnology 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 Takara Bio'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 Takara 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.
Predicted Return Density |
| Returns |
What Drives a Takara Bio 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Takara Bio Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Takara Bio is 793.68. The daily returns are distributed with a variance of 15.43 and standard deviation of 3.93. The mean deviation of Takara Bio is currently at 1.94. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.23 | |
β | Beta against Dow Jones | 0.19 | |
σ | Overall volatility | 3.93 | |
Ir | Information ratio | 0.04 |
Takara Bio Stock Return Volatility
Takara Bio historical daily return volatility represents how much of Takara Bio stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.9285% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7551% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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 Takara Stock performing well and Takara Bio 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 Takara Bio'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SSU | 2.94 | 0.96 | 0.35 | 1.64 | 2.16 | 7.66 | 15.03 | |||
| 2WGA | 2.37 | 0.69 | 0.27 | 1.46 | 1.94 | 7.08 | 19.36 | |||
| PKX | 2.00 | 0.39 | 0.12 | (3.84) | 2.07 | 4.76 | 20.00 | |||
| TOMA | 1.42 | 0.24 | 0.10 | 1.08 | 1.84 | 2.84 | 8.41 | |||
| 5EE | 1.46 | 0.51 | 0.26 | 2.13 | 1.07 | 3.57 | 6.58 | |||
| 4FK | 1.33 | 0.69 | 0.40 | (2.96) | 0.65 | 4.44 | 8.43 | |||
| LGLG | 3.40 | 0.07 | 0.01 | 0.15 | 3.77 | 8.55 | 17.99 | |||
| C6TB | 1.33 | (0.01) | 0.00 | 0.11 | 0.00 | 1.83 | 15.99 | |||
| ICK | 1.94 | 0.12 | 0.00 | (0.13) | 3.33 | 2.99 | 23.71 | |||
| ICKB | 1.20 | 0.03 | (0.02) | (0.11) | 1.53 | 3.01 | 10.33 |
About Takara Bio Volatility
Volatility is a rate at which the price of Takara Bio 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 Takara Bio may increase or decrease. In other words, similar to Takara's beta indicator, it measures the risk of Takara Bio and helps estimate the fluctuations that may happen in a short period of time. So if prices of Takara Bio 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.Takara Bio Inc., together with its subsidiaries, operates as a biotechnology company in Japan, the United States, China, other Asia, Europe, and internationally. The company was founded in 2002 and is headquartered in Kusatsu, Japan. TAKARA BIO is traded on Frankfurt Stock Exchange in Germany.
Takara Bio'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 Takara Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Takara Bio's price varies over time.
3 ways to utilize Takara Bio's volatility to invest better
Higher Takara Bio's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Takara Bio 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. Takara Bio 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 Takara Bio investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Takara Bio'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 Takara Bio's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Takara Bio Investment Opportunity
Takara Bio has a volatility of 3.93 and is 5.17 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Takara Bio is lower than 35 percent of all global equities and portfolios over the last 90 days. You can use Takara Bio to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Takara Bio to be traded at €6.75 in 90 days.Good diversification
The correlation between Takara Bio and DJI is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Takara Bio and DJI in the same portfolio, assuming nothing else is changed.
Takara Bio Additional Risk Indicators
The analysis of Takara Bio'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 Takara Bio's investment and either accepting that risk or mitigating it. Along with some common measures of Takara Bio 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 | 0.0585 | |||
| Market Risk Adjusted Performance | 1.29 | |||
| Mean Deviation | 1.98 | |||
| Semi Deviation | 2.23 | |||
| Downside Deviation | 2.58 | |||
| Coefficient Of Variation | 1596.91 | |||
| Standard Deviation | 3.98 |
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.
Takara Bio 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 Takara Bio 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. Takara Bio'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, Takara Bio'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 Takara Bio.
Complementary Tools for Takara Stock analysis
When running Takara Bio's price analysis, check to measure Takara Bio'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 Takara Bio is operating at the current time. Most of Takara Bio's value examination focuses on studying past and present price action to predict the probability of Takara Bio's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Takara Bio's price. Additionally, you may evaluate how the addition of Takara Bio to your portfolios can decrease your overall portfolio volatility.
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