We consider Evermore not very risky. Evermore Chemical In
secures Sharpe Ratio (or Efficiency) of 0.02 which denotes Evermore Chemical In
had 0.02% of return per unit of risk over the last 1 month. Our philosophy towards predicting volatility of a stock is to use all available market data together with company specific technical indicators
that cannot be diversified away. We have found twenty-eight technical indicators
for Evermore Chemical Industry Co Ltd which you can use to evaluate future volatility of the firm. Please make sure to check Evermore Chemical In Coefficient Of Variation
of 5173.96, Mean Deviation
of 0.8781 and Downside Deviation
of 1.68 to check if risk estimate we provide are consistent with the epected return of 0.03%.
Projected Return Density against Market
Assuming 30 trading days horizon, Evermore has beta of 0.03 . This suggests as returns on market go up, Evermore avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding Evermore Chemical Industry Co Ltd will be expected to be much smaller as well. Moreover, Evermore Chemical Industry Co Ltd has alpha of 0.03 implying that it can potentially generate 0.03% excess return over S&P 500 after adjusting for the inherited market risk (beta).
Predicted Return Density
Assuming 30 trading days horizon, the coefficient of variation of Evermore is 5173.96. The daily returns are destributed with a variance of 2.06 and standard deviation of 1.43. The mean deviation of Evermore Chemical Industry Co Ltd is currently at 0.88. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.84
Actual Return Volatility
Evermore Chemical Industry Co Ltd accepts 1.43% volatility on return distribution over the 30 days horizon. S&P 500 shows 0.84% volatility of returns over 30 trading days.