ZKH Group Limited Stock Volatility

ZKH Stock   3.02  0.02  0.67%   
For ZKH Group, daily and longer-window stock price variability maps into the risk metrics that matter for sizing positions. Its long-term beta is 0.49, meaning it tends to be less volatile than the market as a whole. The stock shows minimal price volatility over the last 3 months.

Sharpe Ratio = -0.0151

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ZKH Group Limited (ZKH) recorded a Market Risk Adjusted Performance of -0.1%, a Risk of 5.32, and a Risk Adjusted Performance of -0.01%. The stock is currently underperforming relative to its full potential based on monthly moving averages.
Key indicators related to ZKH Group's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity

Key risk metrics for ZKH Group (3 Months):

 Beta
0.72
 Alpha
-0.11
 Risk
5.32
 Sharpe Ratio
-0.02
 Expected Return
-0.08

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Sensitivity To Market

ZKH Group Limited exhibits a beta of 0.72, representing its market-relative sensitivity. This coefficient separates systematic risk from company-specific volatility. Total return dispersion is approximately 5.32%. ZKH Group Limited return patterns over the selected horizon reflect a minimal level of variability, based on dispersion and downside-focused statistics. Standard deviation is near 5.16%. Volatility is commonly higher for smaller or less liquid equities due to wider spreads and thinner order books. For ZKH Group, measured downside deviation describes the intensity of negative return periods.
Current 90-day ZKH Group correlation with market (Dow Jones Industrial)
α-0.1074   β0.72
3 Months Beta |ZKH Group Limited Demand Trend
Current 90-day ZKH Group correlation with market (Dow Jones Industrial)

Downside Risk

For ZKH Group, the standard deviation figure expresses the observed spread of daily returns over the selected period. The magnitude of ZKH Group standard deviation determines where it falls on the volatility spectrum relative to peers. Because standard deviation treats upside and downside moves equally, pairing it with downside deviation isolates asymmetric risk exposure for ZKH Group.
Standard Deviation
    
  5.32  
Upside and downside risks in ZKH Group are not symmetric. Downside deviation measures only the risk of loss in ZKH Group's returns, unlike standard deviation which includes all moves. The risk profile of ZKH Group has two components: upside risk and downside risk. ZKH Group Limited (ZKH) recorded a Maximum Drawdown of 32.32.

Stock Volatility Analysis

Market participants monitor ZKH Group volatility to assess the stock's price stability. Sharp price swings in ZKH Group's stock often accompany major news events or earnings announcements. A wide deviation implies greater uncertainty and potential reward or loss for ZKH Group.
Transformation
This analysis covers sixty-one data points across the selected time horizon. The Average Price transformation calculates the mean of ZKH Group Limited's open, high, low, and close for each trading period. By incorporating all four price components equally, it provides a balanced representation of each period's trading activity. Compared to using the closing price alone, the average price reduces the influence of end-of-day positioning and can serve as a smoother input for other technical indicators.

Projected Return Density Against Market

Over a 90-day investment horizon, ZKH Group has a beta of 0.7156. This usually means as returns on the market go up, ZKH Group's average returns tend to increase less than the benchmark. However, during a bear market, the loss from holding ZKH Group Limited tends to be smaller as well.
Exposure to the stock market introduces systematic volatility in ZKH Group. In contrast, company or sector-specific developments represent asset-level risk that may be diversified away. ZKH Group Limited (ZKH) recorded a Mean Deviation of 2.31 and a Standard Deviation of 5.16.
ZKH Group Limited has a negative alpha, implying that risk has not been adequately compensated by returns. ZKH is significantly underperforming the Dow Jones Industrial.
   Predicted Return Distribution   
       Density  
ZKH Group's volatility is typically evaluated with standard deviation and beta. Standard deviation reflects how far ZKH Group's returns usually move from the mean over the selected horizon.

What Drives ZKH Group's Price Volatility?

Industry Dynamics

ZKH Group's volatility can rise when competitive dynamics or demand conditions shift across the Machinery sector.

Political and Economic Environment

Changes in fiscal policy, rates, and growth expectations affect market-wide risk premiums and spill into ZKH Group's trading.

ZKH Group's Company-Specific Factors

Event risk around earnings, forecasts, and operating performance can create abrupt price dispersion in ZKH Group.

Stock Risk Measures

Over a 90-day investment horizon, the coefficient of variation of ZKH Group is -6601.47. The daily returns are distributed with a variance of 28.25 and standard deviation of 5.32. The mean deviation of ZKH Group Limited is currently at 2.39. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.95
α
Alpha over Dow Jones
-0.1074
β
Beta against Dow Jones0.72
σ
Overall volatility
5.32
Ir
Information ratio -0.0219

Stock Return Volatility

ZKH Group return volatility captures the typical daily swing in stock returns relative to the mean over the selected period. The firm has volatility of 5.3155% on return distribution over a 90-day investment horizon. Meanwhile, Dow Jones Industrial reported 0.9314% volatility on return distribution over a 90-day investment 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.

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Risk-Adjusted Indicators

ZKH Group Company can look attractive on recent price action while risk efficiency lags the peer group. Peer-relative risk metrics add context on drawdown behavior, consistency, and return quality. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.

Risk Metrics, Assumptions & Methodology

Volatility regime analysis for ZKH Group identifies whether current dispersion is elevated, compressed, or transitioning between states. Compression regimes can persist, but breakouts from low volatility tend to produce outsized moves. ZKH Group has a market cap of 477.83 million, ROE of -4.63%.

Reported values for ZKH Group Limited are derived from periodic company reporting and market reference feeds and standardized for analysis. Volatility and downside metrics are estimated from historical return dispersion.

Editorial review and methodology oversight provided by: Ellen Johnson, Member of Macroaxis Editorial Board

Volatility Profile Summary

Recent data suggests that ZKH Group Limited is more volatile than Dow Jones Industrial by approximately 5.72x over the selected horizon. This differential reflects the relative dispersion of returns and frames how the asset responds to broader market conditions. Observed price behavior indicates modest directional movement within the current volatility regime. Across the current 90-day horizon, that places the security below 47% of the broader equity and portfolio universe on a pure volatility basis. This positioning reflects relative dispersion compared to peers rather than extreme instability.

ZKH Group Limited with characteristics aligned to broad market upside participation. This short-horizon analysis focuses on what the latest move may imply for immediate market context. It gains reliability when combined with broader risk controls and volatility-adjusted analysis. a moderate upward price movement. Return distributions derived from historical modeling outline a range of potential outcomes over the selected 90-day horizon. View ZKH Group probability analysis.

Moderate diversification
The correlation between ZKH Group and Dow Jones is 0.37, which Macroaxis classifies as Moderate diversification for the selected horizon. Lower overlap tends to improve diversification, while higher overlap means both positions carry similar risk.

Additional Risk Indicators

Secondary risk indicators for ZKH Group Limited evaluate exposure beyond standard deviation, beta, or one headline volatility measure. Cross-security comparison within similar growth and valuation profiles provides additional context for interpreting relative risk positioning.

ZKH Group Suggested Diversification Pairs

A pair-trading setup around ZKH Group shifts the return benchmark from the broad market to a second position, altering the risk profile. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
While pairing positions reduces portfolio risk, some forms of risk persist no matter which instruments are combined. No matter how well a pair is constructed around ZKH Group, market-wide risk remains. What pair trading can address is ZKH Group's unsystematic risk - the portion driven by company or sector-specific factors rather than broad market forces.

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