SPEAR Investments (Netherlands) Volatility
| QEV Stock | 6.90 0.00 0.00% |
SPEAR Investments owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.16, which indicates the firm had a -0.16 % return per unit of volatility over the last 3 months. SPEAR Investments I exposes sixteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate SPEAR Investments' risk adjusted performance of (0.14), and Variance of 5.74 to confirm the risk estimate we provide.
SPEAR |
SPEAR Investments 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 SPEAR daily returns, and it is calculated using variance and standard deviation. We also use SPEAR's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SPEAR Investments volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as SPEAR Investments 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 SPEAR Investments at lower prices. For example, an investor can purchase SPEAR 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 SPEAR Investments' 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 against SPEAR Stock
| 0.84 | PRX | Prosus NV | PairCorr |
| 0.8 | HAL | HAL Trust | PairCorr |
| 0.79 | SHELL | Shell PLC | PairCorr |
| 0.71 | ASML | ASML Holding NV | PairCorr |
| 0.7 | INGA | ING Groep NV | PairCorr |
| 0.63 | UMG | Universal Music Group | PairCorr |
| 0.36 | ADYEN | Adyen NV | PairCorr |
SPEAR Investments Market Sensitivity And Downside Risk
SPEAR Investments' beta coefficient measures the volatility of SPEAR 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 SPEAR stock's returns against your selected market. In other words, SPEAR Investments's beta of -0.71 provides an investor with an approximation of how much risk SPEAR Investments stock can potentially add to one of your existing portfolios. SPEAR Investments I exhibits very low volatility with skewness of -6.6 and kurtosis of 45.69. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure SPEAR Investments' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact SPEAR Investments' 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 SPEAR Investments Demand TrendCheck current 90 days SPEAR Investments correlation with market (Dow Jones Industrial)SPEAR Beta |
SPEAR 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 | 2.45 |
It is essential to understand the difference between upside risk (as represented by SPEAR Investments's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SPEAR Investments' daily returns or price. Since the actual investment returns on holding a position in spear 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 SPEAR Investments.
SPEAR Investments Stock Volatility Analysis
Volatility refers to the frequency at which SPEAR Investments stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SPEAR Investments' price changes. Investors will then calculate the volatility of SPEAR Investments' 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 SPEAR Investments' volatility:
Historical Volatility
This type of stock volatility measures SPEAR Investments' fluctuations based on previous trends. It's commonly used to predict SPEAR Investments' 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 SPEAR Investments' 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 SPEAR Investments' 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. SPEAR Investments 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.
SPEAR Investments Projected Return Density Against Market
Assuming the 90 days trading horizon SPEAR Investments I has a beta of -0.7129 indicating as returns on the benchmark increase, returns on holding SPEAR Investments are expected to decrease at a much lower rate. During a bear market, however, SPEAR Investments I 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 SPEAR Investments or Investing 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 SPEAR Investments' 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 SPEAR 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.
SPEAR Investments I has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a SPEAR Investments 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.SPEAR Investments Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of SPEAR Investments is -632.11. The daily returns are distributed with a variance of 6.01 and standard deviation of 2.45. The mean deviation of SPEAR Investments I is currently at 0.79. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | -0.29 | |
β | Beta against Dow Jones | -0.71 | |
σ | Overall volatility | 2.45 | |
Ir | Information ratio | -0.21 |
SPEAR Investments Stock Return Volatility
SPEAR Investments historical daily return volatility represents how much of SPEAR Investments stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 2.4508% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8415% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
SPEAR Investments Investment Opportunity
SPEAR Investments I has a volatility of 2.45 and is 2.92 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of SPEAR Investments I is lower than 21 percent of all global equities and portfolios over the last 90 days. You can use SPEAR Investments I to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of SPEAR Investments to be traded at 6.83 in 90 days.Very good diversification
The correlation between SPEAR Investments I and DJI is -0.28 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPEAR Investments I and DJI in the same portfolio, assuming nothing else is changed.
SPEAR Investments Additional Risk Indicators
The analysis of SPEAR Investments' 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 SPEAR Investments' investment and either accepting that risk or mitigating it. Along with some common measures of SPEAR Investments 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 | (0.14) | |||
| Market Risk Adjusted Performance | 0.5432 | |||
| Mean Deviation | 0.7587 | |||
| Coefficient Of Variation | (647.12) | |||
| Standard Deviation | 2.39 | |||
| Variance | 5.74 | |||
| Information Ratio | (0.21) |
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.
SPEAR Investments 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 SPEAR Investments 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. SPEAR Investments' 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, SPEAR Investments' 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 SPEAR Investments I.
Additional Tools for SPEAR Stock Analysis
When running SPEAR Investments' price analysis, check to measure SPEAR Investments' 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 SPEAR Investments is operating at the current time. Most of SPEAR Investments' value examination focuses on studying past and present price action to predict the probability of SPEAR Investments' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SPEAR Investments' price. Additionally, you may evaluate how the addition of SPEAR Investments to your portfolios can decrease your overall portfolio volatility.