Ruentex Engineering (Taiwan) Volatility
| 2597 Stock | TWD 171.00 1.00 0.59% |
Ruentex Engineering appears to be very steady, given 3 months investment horizon. Ruentex Engineering maintains Sharpe Ratio (i.e., Efficiency) of 0.3, which implies the firm had a 0.3% return per unit of risk over the last 3 months. By analyzing Ruentex Engineering's technical indicators, you can evaluate if the expected return of 0.69% is justified by implied risk. Please evaluate Ruentex Engineering's Coefficient Of Variation of 370.89, risk adjusted performance of 0.1753, and Semi Deviation of 0.6344 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Ruentex Engineering's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Ruentex Engineering 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 Ruentex daily returns, and it is calculated using variance and standard deviation. We also use Ruentex's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ruentex Engineering volatility.
Ruentex |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ruentex Engineering 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 Ruentex Engineering at lower prices. For example, an investor can purchase Ruentex 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 Ruentex Engineering's 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.
Moving together with Ruentex Stock
| 0.71 | 2882A | Cathay Financial Holding | PairCorr |
| 0.65 | 2881A | Fubon Financial Holding | PairCorr |
| 0.91 | 2891 | CTBC Financial Holding | PairCorr |
| 0.85 | 2883 | China Development | PairCorr |
| 0.94 | 2317 | Hon Hai Precision | PairCorr |
| 0.85 | 2330 | Taiwan Semiconductor | PairCorr |
Moving against Ruentex Stock
| 0.89 | 2882B | Cathay Financial Holding | PairCorr |
| 0.81 | 2891C | CTBC Financial Holding | PairCorr |
| 0.68 | 2888A | Shin Kong Financial | PairCorr |
| 0.61 | 2888 | Shin Kong Financial | PairCorr |
Ruentex Engineering Market Sensitivity And Downside Risk
Ruentex Engineering's beta coefficient measures the volatility of Ruentex 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 Ruentex stock's returns against your selected market. In other words, Ruentex Engineering's beta of -0.0344 provides an investor with an approximation of how much risk Ruentex Engineering stock can potentially add to one of your existing portfolios. Ruentex Engineering Construction has relatively low volatility with skewness of 1.82 and kurtosis of 4.72. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ruentex Engineering'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 Ruentex Engineering'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 Ruentex Engineering Demand TrendCheck current 90 days Ruentex Engineering correlation with market (NYSE Composite)Ruentex Beta |
Ruentex 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 | 2.28 |
It is essential to understand the difference between upside risk (as represented by Ruentex Engineering's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ruentex Engineering's daily returns or price. Since the actual investment returns on holding a position in ruentex 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 Ruentex Engineering.
Ruentex Engineering Stock Volatility Analysis
Volatility refers to the frequency at which Ruentex Engineering stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ruentex Engineering's price changes. Investors will then calculate the volatility of Ruentex Engineering'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 Ruentex Engineering's volatility:
Historical Volatility
This type of stock volatility measures Ruentex Engineering's fluctuations based on previous trends. It's commonly used to predict Ruentex Engineering'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 Ruentex Engineering'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 Ruentex Engineering'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. Ruentex Engineering 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.
Ruentex Engineering Projected Return Density Against Market
Assuming the 90 days trading horizon Ruentex Engineering Construction has a beta of -0.0344 . This suggests as returns on the benchmark increase, returns on holding Ruentex Engineering are expected to decrease at a much lower rate. During a bear market, however, Ruentex Engineering Construction 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 Ruentex Engineering or Construction & Engineering 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 Ruentex Engineering'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 Ruentex 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.
Ruentex Engineering Construction has an alpha of 0.5651, implying that it can generate a 0.57 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Ruentex Engineering 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.Ruentex Engineering Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Ruentex Engineering is 330.21. The daily returns are distributed with a variance of 5.18 and standard deviation of 2.28. The mean deviation of Ruentex Engineering Construction is currently at 1.59. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.57 | |
β | Beta against NYSE Composite | -0.03 | |
σ | Overall volatility | 2.28 | |
Ir | Information ratio | 0.23 |
Ruentex Engineering Stock Return Volatility
Ruentex Engineering historical daily return volatility represents how much of Ruentex Engineering stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 2.2764% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.625% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ruentex Engineering Volatility
Volatility is a rate at which the price of Ruentex Engineering 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 Ruentex Engineering may increase or decrease. In other words, similar to Ruentex's beta indicator, it measures the risk of Ruentex Engineering and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ruentex Engineering 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.Ruentex Engineering Construction Co., Ltd. engages in the civil and architectural construction contracting business in Taiwan and internationally. The company was founded in 1975 and is headquartered in Taipei, Taiwan. RUENTEX ENGINEERING operates under Engineering Construction classification in Taiwan and is traded on Taiwan Stock Exchange.
Ruentex Engineering'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 Ruentex Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Ruentex Engineering's price varies over time.
3 ways to utilize Ruentex Engineering's volatility to invest better
Higher Ruentex Engineering's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ruentex Engineering 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. Ruentex Engineering 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 Ruentex Engineering investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ruentex Engineering'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 Ruentex Engineering's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ruentex Engineering Investment Opportunity
Ruentex Engineering Construction has a volatility of 2.28 and is 3.62 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Ruentex Engineering Construction is lower than 20 percent of all global equities and portfolios over the last 90 days. You can use Ruentex Engineering Construction to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Ruentex Engineering to be traded at NT$188.1 in 90 days.Good diversification
The correlation between Ruentex Engineering Constructi and NYA is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ruentex Engineering Constructi and NYA in the same portfolio, assuming nothing else is changed.
Ruentex Engineering Additional Risk Indicators
The analysis of Ruentex Engineering'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 Ruentex Engineering's investment and either accepting that risk or mitigating it. Along with some common measures of Ruentex Engineering 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 | 0.1753 | |||
| Market Risk Adjusted Performance | (16.34) | |||
| Mean Deviation | 1.43 | |||
| Semi Deviation | 0.6344 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 370.89 | |||
| Standard Deviation | 2.12 |
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.
Ruentex Engineering 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 Ruentex Engineering 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. Ruentex Engineering'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, Ruentex Engineering'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 Ruentex Engineering Construction.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ruentex Engineering Construction. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Complementary Tools for Ruentex Stock analysis
When running Ruentex Engineering's price analysis, check to measure Ruentex Engineering'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 Ruentex Engineering is operating at the current time. Most of Ruentex Engineering's value examination focuses on studying past and present price action to predict the probability of Ruentex Engineering's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ruentex Engineering's price. Additionally, you may evaluate how the addition of Ruentex Engineering to your portfolios can decrease your overall portfolio volatility.
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |