OCCIDENTAL PETE P Volatility
| 674599CJ2 | 78.37 1.62 2.11% |
OCCIDENTAL PETE P retains Efficiency (Sharpe Ratio) of -0.15, which implies the bond had a -0.15% return per unit of risk over the last 3 months. OCCIDENTAL exposes twenty-seven different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check OCCIDENTAL's semi deviation of 3.12, and Market Risk Adjusted Performance of 0.0216 to confirm the risk estimate we provide. Key indicators related to OCCIDENTAL's volatility include:
510 Days Market Risk | Chance Of Default | 510 Days Economic Sensitivity |
OCCIDENTAL Bond 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 OCCIDENTAL daily returns, and it is calculated using variance and standard deviation. We also use OCCIDENTAL's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OCCIDENTAL volatility.
OCCIDENTAL |
Downward market volatility can be a perfect environment for investors who play the long game with OCCIDENTAL. They may decide to buy additional shares of OCCIDENTAL at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against OCCIDENTAL Bond
| 0.69 | CSCO | Cisco Systems Aggressive Push | PairCorr |
| 0.64 | AA | Alcoa Corp Fiscal Year End 15th of January 2025 | PairCorr |
| 0.62 | HPQ | HP Inc | PairCorr |
| 0.61 | AXP | American Express Fiscal Year End 24th of January 2025 | PairCorr |
| 0.54 | CVX | Chevron Corp Fiscal Year End 7th of February 2025 | PairCorr |
| 0.54 | XOM | Exxon Mobil Corp Fiscal Year End 7th of February 2025 | PairCorr |
| 0.53 | INTC | Intel Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.52 | BAC | Bank of America Aggressive Push | PairCorr |
| 0.5 | T | ATT Inc Sell-off Trend | PairCorr |
OCCIDENTAL Market Sensitivity And Downside Risk
OCCIDENTAL's beta coefficient measures the volatility of OCCIDENTAL bond 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 OCCIDENTAL bond's returns against your selected market. In other words, OCCIDENTAL's beta of -0.32 provides an investor with an approximation of how much risk OCCIDENTAL bond can potentially add to one of your existing portfolios. OCCIDENTAL PETE P 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 OCCIDENTAL's bond risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact OCCIDENTAL's bond 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 OCCIDENTAL PETE P Demand TrendCheck current 90 days OCCIDENTAL correlation with market (Dow Jones Industrial)OCCIDENTAL Beta |
OCCIDENTAL 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 | 1.56 |
It is essential to understand the difference between upside risk (as represented by OCCIDENTAL's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OCCIDENTAL's daily returns or price. Since the actual investment returns on holding a position in occidental bond 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 OCCIDENTAL.
OCCIDENTAL PETE P Bond Volatility Analysis
Volatility refers to the frequency at which OCCIDENTAL bond price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with OCCIDENTAL's price changes. Investors will then calculate the volatility of OCCIDENTAL's bond to predict their future moves. A bond that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A bond with relatively stable price changes has low volatility. A highly volatile bond 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 OCCIDENTAL's volatility:
Historical Volatility
This type of bond volatility measures OCCIDENTAL's fluctuations based on previous trends. It's commonly used to predict OCCIDENTAL's future behavior based on its past. However, it cannot conclusively determine the future direction of the bond.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for OCCIDENTAL's current market price. This means that the bond will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on OCCIDENTAL'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. OCCIDENTAL PETE P 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.
OCCIDENTAL Projected Return Density Against Market
Assuming the 90 days trading horizon OCCIDENTAL PETE P has a beta of -0.325 . This usually implies as returns on the benchmark increase, returns on holding OCCIDENTAL are expected to decrease at a much lower rate. During a bear market, however, OCCIDENTAL PETE P is likely to outperform the market.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 OCCIDENTAL or Oil And Gas 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 OCCIDENTAL's price will be affected by overall bond 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 OCCIDENTAL bond'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.
OCCIDENTAL PETE P has an alpha of 0.0348, implying that it can generate a 0.0348 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an OCCIDENTAL Price Volatility?
Several factors can influence a bond'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.OCCIDENTAL Bond Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of OCCIDENTAL is -664.42. The daily returns are distributed with a variance of 2.44 and standard deviation of 1.56. The mean deviation of OCCIDENTAL PETE P is currently at 0.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | -0.33 | |
σ | Overall volatility | 1.56 | |
Ir | Information ratio | -0.03 |
OCCIDENTAL Bond Return Volatility
OCCIDENTAL historical daily return volatility represents how much of OCCIDENTAL bond's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. OCCIDENTAL PETE P accepts 1.561% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About OCCIDENTAL Volatility
Volatility is a rate at which the price of OCCIDENTAL 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 OCCIDENTAL may increase or decrease. In other words, similar to OCCIDENTAL's beta indicator, it measures the risk of OCCIDENTAL and helps estimate the fluctuations that may happen in a short period of time. So if prices of OCCIDENTAL 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.3 ways to utilize OCCIDENTAL's volatility to invest better
Higher OCCIDENTAL's bond volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of OCCIDENTAL PETE P bond 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. OCCIDENTAL PETE P bond 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 OCCIDENTAL PETE P investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in OCCIDENTAL's bond 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 OCCIDENTAL's bond relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
OCCIDENTAL Investment Opportunity
OCCIDENTAL PETE P has a volatility of 1.56 and is 2.0 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than OCCIDENTAL. You can use OCCIDENTAL PETE P to enhance the returns of your portfolios. The bond experiences an unexpected upward trend. Watch out for market signals. Check odds of OCCIDENTAL to be traded at 94.04 in 90 days.Good diversification
The correlation between OCCIDENTAL PETE P and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OCCIDENTAL PETE P and DJI in the same portfolio, assuming nothing else is changed.
OCCIDENTAL Additional Risk Indicators
The analysis of OCCIDENTAL'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 OCCIDENTAL's investment and either accepting that risk or mitigating it. Along with some common measures of OCCIDENTAL bond'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 | 0.0093 | |||
| Market Risk Adjusted Performance | 0.0216 | |||
| Mean Deviation | 1.63 | |||
| Semi Deviation | 3.12 | |||
| Downside Deviation | 3.18 | |||
| Coefficient Of Variation | 62943.64 | |||
| Standard Deviation | 3.91 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential bonds, we recommend comparing similar bonds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
OCCIDENTAL 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 OCCIDENTAL 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. OCCIDENTAL'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, OCCIDENTAL'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 OCCIDENTAL PETE P.
Other Information on Investing in OCCIDENTAL Bond
OCCIDENTAL financial ratios help investors to determine whether OCCIDENTAL Bond 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 OCCIDENTAL with respect to the benefits of owning OCCIDENTAL security.