Niu Technologies Stock Volatility
| NIU Stock | USD 2.06 0.01 0.49% |
Niu Technologies appears to be very risky, given 3 months investment horizon. Niu Technologies has Sharpe Ratio of 0.0673, which conveys that the firm had a 0.0673% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Niu Technologies, which you can use to evaluate the volatility of the firm. Please exercise Niu Technologies' Mean Deviation of 4.02, downside deviation of 3.85, and Risk Adjusted Performance of 0.0311 to check out if our risk estimates are consistent with your expectations. Key indicators related to Niu Technologies' volatility include:
660 Days Market Risk | Chance Of Distress | 660 Days Economic Sensitivity |
Niu Technologies 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 Niu daily returns, and it is calculated using variance and standard deviation. We also use Niu's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Niu Technologies volatility.
Niu |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Niu Technologies can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Niu Technologies at lower prices. For example, an investor can purchase Niu stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Niu Technologies' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Niu Technologies Market Sensitivity And Downside Risk
Niu Technologies' beta coefficient measures the volatility of Niu 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 Niu stock's returns against your selected market. In other words, Niu Technologies's beta of 1.74 provides an investor with an approximation of how much risk Niu Technologies stock can potentially add to one of your existing portfolios. Niu Technologies 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 Niu Technologies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Niu Technologies' 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 Niu Technologies Demand TrendCheck current 90 days Niu Technologies correlation with market (NYSE Composite)Niu Beta |
Niu 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 | 5.64 |
It is essential to understand the difference between upside risk (as represented by Niu Technologies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Niu Technologies' daily returns or price. Since the actual investment returns on holding a position in niu stock 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 Niu Technologies.
Using Niu Put Option to Manage Risk
Put options written on Niu Technologies grant holders of the option the right to sell a specified amount of Niu Technologies at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Niu Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Niu Technologies' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Niu Technologies will be realized, the loss incurred will be offset by the profits made with the option trade.
Niu Technologies' PUT expiring on 2024-04-19
Profit |
| Niu Technologies Price At Expiration |
Niu Technologies Stock Volatility Analysis
Volatility refers to the frequency at which Niu Technologies stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Niu Technologies' price changes. Investors will then calculate the volatility of Niu Technologies' 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 Niu Technologies' volatility:
Historical Volatility
This type of stock volatility measures Niu Technologies' fluctuations based on previous trends. It's commonly used to predict Niu Technologies' 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 Niu Technologies' 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 Niu Technologies' 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. Niu Technologies 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.
Niu Technologies Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.7364 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Niu Technologies will likely underperform.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 Niu Technologies or Automobiles 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 Niu Technologies' 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 Niu 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.
Niu Technologies has an alpha of 0.1084, implying that it can generate a 0.11 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Niu Technologies 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.Niu Technologies Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Niu Technologies is 1485.42. The daily returns are distributed with a variance of 31.77 and standard deviation of 5.64. The mean deviation of Niu Technologies is currently at 4.0. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.11 | |
β | Beta against NYSE Composite | 1.74 | |
σ | Overall volatility | 5.64 | |
Ir | Information ratio | 0.03 |
Niu Technologies Stock Return Volatility
Niu Technologies historical daily return volatility represents how much of Niu Technologies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 5.6362% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6219% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Niu Technologies Volatility
Volatility is a rate at which the price of Niu Technologies 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 Niu Technologies may increase or decrease. In other words, similar to Niu's beta indicator, it measures the risk of Niu Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Niu Technologies 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 506.5 M | 531.8 M | |
| Market Cap | 2.4 B | 4.5 B |
Niu Technologies' 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 Niu Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Niu Technologies' price varies over time.
3 ways to utilize Niu Technologies' volatility to invest better
Higher Niu Technologies' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Niu Technologies 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. Niu Technologies 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 Niu Technologies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Niu Technologies' 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 Niu Technologies' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Niu Technologies Investment Opportunity
Niu Technologies has a volatility of 5.64 and is 9.1 times more volatile than NYSE Composite. 49 percent of all equities and portfolios are less risky than Niu Technologies. You can use Niu Technologies to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Niu Technologies to be traded at $2.16 in 90 days.Modest diversification
The correlation between Niu Technologies and NYA is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Niu Technologies and NYA in the same portfolio, assuming nothing else is changed.
Niu Technologies Additional Risk Indicators
The analysis of Niu Technologies' 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 Niu Technologies' investment and either accepting that risk or mitigating it. Along with some common measures of Niu Technologies 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 | 0.0311 | |||
| Market Risk Adjusted Performance | 0.1179 | |||
| Mean Deviation | 4.02 | |||
| Semi Deviation | 3.63 | |||
| Downside Deviation | 3.85 | |||
| Coefficient Of Variation | 2839.29 | |||
| Standard Deviation | 5.6 |
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.
Niu Technologies 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 Niu Technologies 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. Niu Technologies' 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, Niu Technologies' 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 Niu Technologies.
When determining whether Niu Technologies is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Niu Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Niu Technologies Stock. Highlighted below are key reports to facilitate an investment decision about Niu Technologies Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Niu Technologies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. For more information on how to buy Niu Stock please use our How to Invest in Niu Technologies guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Complementary Tools for Niu Stock analysis
When running Niu Technologies' price analysis, check to measure Niu Technologies' 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 Niu Technologies is operating at the current time. Most of Niu Technologies' value examination focuses on studying past and present price action to predict the probability of Niu Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Niu Technologies' price. Additionally, you may evaluate how the addition of Niu Technologies to your portfolios can decrease your overall portfolio volatility.
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Is Niu Technologies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Niu Technologies. If investors know Niu will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Niu Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.97) | Earnings Share (0.31) | Revenue Per Share 33.82 | Quarterly Revenue Growth (0.22) | Return On Assets (0.08) |
The market value of Niu Technologies is measured differently than its book value, which is the value of Niu that is recorded on the company's balance sheet. Investors also form their own opinion of Niu Technologies' value that differs from its market value or its book value, called intrinsic value, which is Niu Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Niu Technologies' market value can be influenced by many factors that don't directly affect Niu Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Niu Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Niu Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Niu Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.