Medical Properties (Germany) Volatility
| M3P Stock | EUR 2.78 0.83 1.12% |
Medical Properties appears to be risky, given 3 months investment horizon. Medical Properties Trust has Sharpe Ratio of 0.15, which conveys that the firm had a 0.15% return per unit of risk over the last 3 months. By analyzing Medical Properties' technical indicators, you can evaluate if the expected return of 0.73% is justified by implied risk. Please exercise Medical Properties' Mean Deviation of 3.51, risk adjusted performance of 0.1, and Downside Deviation of 4.04 to check out if our risk estimates are consistent with your expectations. Key indicators related to Medical Properties' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Medical Properties 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 Medical daily returns, and it is calculated using variance and standard deviation. We also use Medical's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Medical Properties volatility.
Medical |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Medical Properties 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 Medical Properties at lower prices. For example, an investor can purchase Medical 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 Medical Properties' 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 Medical Stock
| 0.66 | 6FO | GOODTECH ASA A | PairCorr |
| 0.77 | ESLC | ESSILORLUXOTTICA 12ON | PairCorr |
| 0.81 | GC6 | Primo Water Corp | PairCorr |
Moving against Medical Stock
| 0.89 | MLB1 | MercadoLibre Earnings Call This Week | PairCorr |
| 0.74 | CJ8A | CARGOJET INC VAR Earnings Call This Week | PairCorr |
| 0.72 | PP1 | Papa Johns International | PairCorr |
| 0.58 | 99Q | ENTREPARTICULIERS EO | PairCorr |
| 0.57 | DBPD | Xtrackers ShortDAX | PairCorr |
Medical Properties Market Sensitivity And Downside Risk
Medical Properties' beta coefficient measures the volatility of Medical 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 Medical stock's returns against your selected market. In other words, Medical Properties's beta of -0.39 provides an investor with an approximation of how much risk Medical Properties stock can potentially add to one of your existing portfolios. Medical Properties Trust shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Medical Properties' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Medical Properties' 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 Medical Properties Trust Demand TrendCheck current 90 days Medical Properties correlation with market (NYSE Composite)Medical Beta |
Medical 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 | 4.99 |
It is essential to understand the difference between upside risk (as represented by Medical Properties's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Medical Properties' daily returns or price. Since the actual investment returns on holding a position in medical 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 Medical Properties.
Medical Properties Trust Stock Volatility Analysis
Volatility refers to the frequency at which Medical Properties stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Medical Properties' price changes. Investors will then calculate the volatility of Medical Properties' 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 Medical Properties' volatility:
Historical Volatility
This type of stock volatility measures Medical Properties' fluctuations based on previous trends. It's commonly used to predict Medical Properties' 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 Medical Properties' 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 Medical Properties' 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. Medical Properties Trust 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.
Medical Properties Projected Return Density Against Market
Assuming the 90 days horizon Medical Properties Trust has a beta of -0.3854 . This indicates as returns on the benchmark increase, returns on holding Medical Properties are expected to decrease at a much lower rate. During a bear market, however, Medical Properties Trust 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 Medical Properties or Real Estate 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 Medical Properties' 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 Medical 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.
Medical Properties Trust has an alpha of 0.75, implying that it can generate a 0.75 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Medical Properties 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.Medical Properties Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Medical Properties is 684.04. The daily returns are distributed with a variance of 24.94 and standard deviation of 4.99. The mean deviation of Medical Properties Trust is currently at 3.51. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.75 | |
β | Beta against NYSE Composite | -0.39 | |
σ | Overall volatility | 4.99 | |
Ir | Information ratio | 0.13 |
Medical Properties Stock Return Volatility
Medical Properties historical daily return volatility represents how much of Medical Properties stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 4.9935% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Medical Properties Volatility
Volatility is a rate at which the price of Medical Properties 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 Medical Properties may increase or decrease. In other words, similar to Medical's beta indicator, it measures the risk of Medical Properties and helps estimate the fluctuations that may happen in a short period of time. So if prices of Medical Properties 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.Medical Properties Trust, Inc. is a self-advised real estate investment trust that provides capital to hospitals located throughout the U.S. and other countries. Our financing model allows owners of hospitals to unlock the value of their underlying real estate, primarily through sale leaseback transactions. MEDICAL PROPERTIES operates under REIT - Healthcare Facilities classification in Germany and is traded on Frankfurt Stock Exchange. It employs 77 people.
Medical Properties' 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 Medical Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Medical Properties' price varies over time.
3 ways to utilize Medical Properties' volatility to invest better
Higher Medical Properties' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Medical Properties Trust 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. Medical Properties Trust 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 Medical Properties Trust investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Medical Properties' 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 Medical Properties' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Medical Properties Investment Opportunity
Medical Properties Trust has a volatility of 4.99 and is 7.8 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Medical Properties Trust is lower than 44 percent of all global equities and portfolios over the last 90 days. You can use Medical Properties Trust to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Medical Properties to be traded at €4.07 in 90 days.Good diversification
The correlation between Medical Properties Trust 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 Medical Properties Trust and NYA in the same portfolio, assuming nothing else is changed.
Medical Properties Additional Risk Indicators
The analysis of Medical Properties' 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 Medical Properties' investment and either accepting that risk or mitigating it. Along with some common measures of Medical Properties 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 | 0.1 | |||
| Market Risk Adjusted Performance | (1.86) | |||
| Mean Deviation | 3.51 | |||
| Semi Deviation | 3.62 | |||
| Downside Deviation | 4.04 | |||
| Coefficient Of Variation | 684.04 | |||
| Standard Deviation | 4.99 |
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.
Medical Properties 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 Medical Properties 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. Medical Properties' 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, Medical Properties' 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 Medical Properties Trust.
When determining whether Medical Properties Trust is a strong investment it is important to analyze Medical Properties' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Medical Properties' future performance. For an informed investment choice regarding Medical Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Medical Properties Trust. 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Complementary Tools for Medical Stock analysis
When running Medical Properties' price analysis, check to measure Medical Properties' 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 Medical Properties is operating at the current time. Most of Medical Properties' value examination focuses on studying past and present price action to predict the probability of Medical Properties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Medical Properties' price. Additionally, you may evaluate how the addition of Medical Properties to your portfolios can decrease your overall portfolio volatility.
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |