Ascopiave SpA (Germany) Volatility
| AVA Stock | EUR 2.32 0.03 1.31% |
We consider Ascopiave SpA moderately volatile. Ascopiave SpA secures Sharpe Ratio (or Efficiency) of 0.0605, which signifies that the company had a 0.0605% return per unit of standard deviation over the last 3 months. We have found twenty-seven technical indicators for Ascopiave SpA, which you can use to evaluate the volatility of the firm. Please confirm Ascopiave SpA's risk adjusted performance of 0.0274, and Mean Deviation of 0.9623 to double-check if the risk estimate we provide is consistent with the expected return of 0.0872%. Key indicators related to Ascopiave SpA's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Ascopiave SpA 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 Ascopiave daily returns, and it is calculated using variance and standard deviation. We also use Ascopiave's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ascopiave SpA volatility.
Ascopiave |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ascopiave SpA 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 Ascopiave SpA at lower prices. For example, an investor can purchase Ascopiave 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 Ascopiave SpA'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 Ascopiave Stock
| 0.63 | XGH | ENN Energy Holdings | PairCorr |
| 0.66 | XGH | ENN Energy Holdings | PairCorr |
| 0.65 | AEO | Atmos Energy | PairCorr |
| 0.74 | NOU | NiSource | PairCorr |
| 0.65 | LGX1 | China Resources Gas | PairCorr |
Moving against Ascopiave Stock
| 0.81 | GAN | Naturgy Energy Group | PairCorr |
| 0.78 | DBPD | Xtrackers ShortDAX | PairCorr |
| 0.59 | IPOK | Heidelberger Beteiligungshold Earnings Call This Week | PairCorr |
Ascopiave SpA Market Sensitivity And Downside Risk
Ascopiave SpA's beta coefficient measures the volatility of Ascopiave 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 Ascopiave stock's returns against your selected market. In other words, Ascopiave SpA's beta of -0.11 provides an investor with an approximation of how much risk Ascopiave SpA stock can potentially add to one of your existing portfolios. Ascopiave SpA has relatively low volatility with skewness of 1.76 and kurtosis of 7.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ascopiave SpA'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 Ascopiave SpA'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 Ascopiave SpA Demand TrendCheck current 90 days Ascopiave SpA correlation with market (NYSE Composite)Ascopiave Beta |
Ascopiave 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 | 1.44 |
It is essential to understand the difference between upside risk (as represented by Ascopiave SpA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ascopiave SpA's daily returns or price. Since the actual investment returns on holding a position in ascopiave 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 Ascopiave SpA.
Ascopiave SpA Stock Volatility Analysis
Volatility refers to the frequency at which Ascopiave SpA stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ascopiave SpA's price changes. Investors will then calculate the volatility of Ascopiave SpA'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 Ascopiave SpA's volatility:
Historical Volatility
This type of stock volatility measures Ascopiave SpA's fluctuations based on previous trends. It's commonly used to predict Ascopiave SpA'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 Ascopiave SpA'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 Ascopiave SpA'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. Ascopiave SpA 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.
Ascopiave SpA Projected Return Density Against Market
Assuming the 90 days horizon Ascopiave SpA has a beta of -0.1117 . This suggests as returns on the benchmark increase, returns on holding Ascopiave SpA are expected to decrease at a much lower rate. During a bear market, however, Ascopiave SpA 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 Ascopiave SpA or Utilities 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 Ascopiave SpA'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 Ascopiave 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.
Ascopiave SpA has an alpha of 0.0476, implying that it can generate a 0.0476 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Ascopiave SpA 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.Ascopiave SpA Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Ascopiave SpA is 1652.94. The daily returns are distributed with a variance of 2.08 and standard deviation of 1.44. The mean deviation of Ascopiave SpA is currently at 0.99. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.05 | |
β | Beta against NYSE Composite | -0.11 | |
σ | Overall volatility | 1.44 | |
Ir | Information ratio | -0.02 |
Ascopiave SpA Stock Return Volatility
Ascopiave SpA historical daily return volatility represents how much of Ascopiave SpA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.441% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6275% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ascopiave SpA Volatility
Volatility is a rate at which the price of Ascopiave SpA 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 Ascopiave SpA may increase or decrease. In other words, similar to Ascopiave's beta indicator, it measures the risk of Ascopiave SpA and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ascopiave SpA 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.Ascopiave S.p.A. distributes and sells natural gas in Italy. It is also involved in the sale of electric power, heat management, and co-generation activities. ASCOPIAVE operates under Utilities - Regulated Gas classification in Germany and is traded on Frankfurt Stock Exchange. It employs 542 people.
Ascopiave SpA'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 Ascopiave Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Ascopiave SpA's price varies over time.
3 ways to utilize Ascopiave SpA's volatility to invest better
Higher Ascopiave SpA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ascopiave SpA 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. Ascopiave SpA 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 Ascopiave SpA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ascopiave SpA'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 Ascopiave SpA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ascopiave SpA Investment Opportunity
Ascopiave SpA has a volatility of 1.44 and is 2.29 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Ascopiave SpA is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Ascopiave SpA to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Ascopiave SpA to be traded at €2.55 in 90 days.Good diversification
The correlation between Ascopiave SpA and NYA is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ascopiave SpA and NYA in the same portfolio, assuming nothing else is changed.
Ascopiave SpA Additional Risk Indicators
The analysis of Ascopiave SpA'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 Ascopiave SpA's investment and either accepting that risk or mitigating it. Along with some common measures of Ascopiave SpA 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 | 0.0274 | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 0.9623 | |||
| Semi Deviation | 0.9863 | |||
| Downside Deviation | 1.22 | |||
| Coefficient Of Variation | 2841.69 | |||
| Standard Deviation | 1.42 |
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.
Ascopiave SpA 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 Ascopiave SpA 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. Ascopiave SpA'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, Ascopiave SpA'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 Ascopiave SpA.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ascopiave SpA. 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Complementary Tools for Ascopiave Stock analysis
When running Ascopiave SpA's price analysis, check to measure Ascopiave SpA'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 Ascopiave SpA is operating at the current time. Most of Ascopiave SpA's value examination focuses on studying past and present price action to predict the probability of Ascopiave SpA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ascopiave SpA's price. Additionally, you may evaluate how the addition of Ascopiave SpA to your portfolios can decrease your overall portfolio volatility.
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