BUREAU VERITAS (Germany) Volatility
| 4BV0 Stock | 55.00 0.50 0.92% |
At this point, BUREAU VERITAS is very steady. BUREAU VERITAS ADR secures Sharpe Ratio (or Efficiency) of 0.0659, which signifies that the company had a 0.0659 % return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for BUREAU VERITAS ADR, which you can use to evaluate the volatility of the firm. Please confirm BUREAU VERITAS's mean deviation of 1.0, and Risk Adjusted Performance of 0.0922 to double-check if the risk estimate we provide is consistent with the expected return of 0.0898%.
BUREAU |
BUREAU VERITAS 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 BUREAU daily returns, and it is calculated using variance and standard deviation. We also use BUREAU's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of BUREAU VERITAS volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as BUREAU VERITAS 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 BUREAU VERITAS at lower prices to lower their average cost per share. Similarly, when the prices of BUREAU VERITAS's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with BUREAU Stock
Moving against BUREAU Stock
BUREAU VERITAS Market Sensitivity And Downside Risk
BUREAU VERITAS's beta coefficient measures the volatility of BUREAU 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 BUREAU stock's returns against your selected market. In other words, BUREAU VERITAS's beta of 0.0716 provides an investor with an approximation of how much risk BUREAU VERITAS stock can potentially add to one of your existing portfolios. BUREAU VERITAS ADR has relatively low volatility with skewness of 0.18 and kurtosis of 2.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure BUREAU VERITAS'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 BUREAU VERITAS'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 BUREAU VERITAS ADR Demand TrendCheck current 90 days BUREAU VERITAS correlation with market (Dow Jones Industrial)BUREAU Beta |
BUREAU 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 | 1.36 |
It is essential to understand the difference between upside risk (as represented by BUREAU VERITAS's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of BUREAU VERITAS's daily returns or price. Since the actual investment returns on holding a position in bureau 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 BUREAU VERITAS.
BUREAU VERITAS ADR Stock Volatility Analysis
Volatility refers to the frequency at which BUREAU VERITAS stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with BUREAU VERITAS's price changes. Investors will then calculate the volatility of BUREAU VERITAS'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 BUREAU VERITAS's volatility:
Historical Volatility
This type of stock volatility measures BUREAU VERITAS's fluctuations based on previous trends. It's commonly used to predict BUREAU VERITAS'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 BUREAU VERITAS'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 BUREAU VERITAS'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. BUREAU VERITAS ADR 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.
BUREAU VERITAS Projected Return Density Against Market
Assuming the 90 days trading horizon BUREAU VERITAS has a beta of 0.0716 . This suggests as returns on the market go up, BUREAU VERITAS average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding BUREAU VERITAS ADR 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 BUREAU VERITAS or BUREAU 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 BUREAU VERITAS'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 BUREAU 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.
BUREAU VERITAS ADR has an alpha of 0.1096, implying that it can generate a 0.11 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a BUREAU VERITAS 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.BUREAU VERITAS Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of BUREAU VERITAS is 1516.74. The daily returns are distributed with a variance of 1.85 and standard deviation of 1.36. The mean deviation of BUREAU VERITAS ADR is currently at 1.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 0.11 | |
β | Beta against Dow Jones | 0.07 | |
σ | Overall volatility | 1.36 | |
Ir | Information ratio | -0.01 |
BUREAU VERITAS Stock Return Volatility
BUREAU VERITAS historical daily return volatility represents how much of BUREAU VERITAS stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 1.3618% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7804% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
BUREAU VERITAS Investment Opportunity
BUREAU VERITAS ADR has a volatility of 1.36 and is 1.74 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of BUREAU VERITAS ADR is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use BUREAU VERITAS ADR to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of BUREAU VERITAS to be traded at 60.5 in 90 days.Significant diversification
The correlation between BUREAU VERITAS ADR and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding BUREAU VERITAS ADR and DJI in the same portfolio, assuming nothing else is changed.
BUREAU VERITAS Additional Risk Indicators
The analysis of BUREAU VERITAS'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 BUREAU VERITAS's investment and either accepting that risk or mitigating it. Along with some common measures of BUREAU VERITAS 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 | 0.0922 | |||
| Market Risk Adjusted Performance | 1.68 | |||
| Mean Deviation | 1.0 | |||
| Semi Deviation | 1.05 | |||
| Downside Deviation | 1.52 | |||
| Coefficient Of Variation | 1045.79 | |||
| Standard Deviation | 1.35 |
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.
BUREAU VERITAS 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 BUREAU VERITAS 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. BUREAU VERITAS'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, BUREAU VERITAS'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 BUREAU VERITAS ADR.
Complementary Tools for BUREAU Stock analysis
When running BUREAU VERITAS's price analysis, check to measure BUREAU VERITAS'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 BUREAU VERITAS is operating at the current time. Most of BUREAU VERITAS's value examination focuses on studying past and present price action to predict the probability of BUREAU VERITAS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BUREAU VERITAS's price. Additionally, you may evaluate how the addition of BUREAU VERITAS to your portfolios can decrease your overall portfolio volatility.
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