Strategic Investments (Denmark) Volatility

STRINV Stock  DKK 1.17  0.03  2.50%   
Strategic Investments owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0625, which indicates the firm had a -0.0625% return per unit of risk over the last 3 months. Strategic Investments AS exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Strategic Investments' Risk Adjusted Performance of (0.03), variance of 4.35, and Coefficient Of Variation of (1,651) to confirm the risk estimate we provide. Key indicators related to Strategic Investments' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Strategic 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 Strategic daily returns, and it is calculated using variance and standard deviation. We also use Strategic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Strategic Investments volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Strategic 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 Strategic Investments at lower prices. For example, an investor can purchase Strategic 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 Strategic 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 together with Strategic Stock

  0.71MAERSK-B AP Mller -PairCorr
  0.7DNORD DampskibsselskabetPairCorr
  0.66MAERSK-A AP Mller -PairCorr

Strategic Investments Market Sensitivity And Downside Risk

Strategic Investments' beta coefficient measures the volatility of Strategic 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 Strategic stock's returns against your selected market. In other words, Strategic Investments's beta of -0.12 provides an investor with an approximation of how much risk Strategic Investments stock can potentially add to one of your existing portfolios. Strategic Investments AS exhibits very low volatility with skewness of 0.32 and kurtosis of 4.66. Strategic Investments AS is a potential penny stock. Although Strategic Investments may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Strategic Investments AS. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Strategic instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Strategic Investments Demand Trend
Check current 90 days Strategic Investments correlation with market (NYSE Composite)

Strategic Beta

    
  -0.12  
Strategic 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

    
  2.12  
It is essential to understand the difference between upside risk (as represented by Strategic Investments's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Strategic Investments' daily returns or price. Since the actual investment returns on holding a position in strategic 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 Strategic Investments.

Strategic Investments Stock Volatility Analysis

Volatility refers to the frequency at which Strategic Investments stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Strategic Investments' price changes. Investors will then calculate the volatility of Strategic 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 Strategic Investments' volatility:

Historical Volatility

This type of stock volatility measures Strategic Investments' fluctuations based on previous trends. It's commonly used to predict Strategic 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 Strategic 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 Strategic 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. Strategic 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.

Strategic Investments Projected Return Density Against Market

Assuming the 90 days trading horizon Strategic Investments AS has a beta of -0.1186 . This usually implies as returns on benchmark increase, returns on holding Strategic Investments are expected to decrease at a much lower rate. During the bear market, however, Strategic Investments AS 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 Strategic Investments or Financial Services 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 Strategic 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 Strategic 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.
Strategic Investments AS has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Strategic Investments' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how strategic stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Strategic 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.

Strategic Investments Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Strategic Investments is -1599.33. The daily returns are distributed with a variance of 4.51 and standard deviation of 2.12. The mean deviation of Strategic Investments AS is currently at 1.4. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.12
β
Beta against NYSE Composite-0.12
σ
Overall volatility
2.12
Ir
Information ratio -0.13

Strategic Investments Stock Return Volatility

Strategic Investments historical daily return volatility represents how much of Strategic Investments stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.1226% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Strategic Investments Volatility

Volatility is a rate at which the price of Strategic Investments 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 Strategic Investments may increase or decrease. In other words, similar to Strategic's beta indicator, it measures the risk of Strategic Investments and helps estimate the fluctuations that may happen in a short period of time. So if prices of Strategic Investments 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.
Strategic Investments AS invests in securities and financial instruments in Denmark. It invests in small and midcap equities, hedge funds, and other instruments. Strategic Investments operates under Financial Services classification in Denmark and is traded on Copenhagen Stock Exchange.
Strategic Investments' 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 Strategic Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Strategic Investments' price varies over time.

3 ways to utilize Strategic Investments' volatility to invest better

Higher Strategic Investments' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Strategic Investments 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. Strategic Investments 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 Strategic Investments investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Strategic Investments' 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 Strategic Investments' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Strategic Investments Investment Opportunity

Strategic Investments AS has a volatility of 2.12 and is 3.72 times more volatile than NYSE Composite. 18 percent of all equities and portfolios are less risky than Strategic Investments. You can use Strategic Investments AS to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Strategic Investments to be traded at kr1.1232 in 90 days.

Good diversification

The correlation between Strategic Investments AS and NYA is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Investments AS and NYA in the same portfolio, assuming nothing else is changed.

Strategic Investments Additional Risk Indicators

The analysis of Strategic 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 Strategic Investments' investment and either accepting that risk or mitigating it. Along with some common measures of Strategic 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.
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.

Strategic 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 Strategic 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. Strategic 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, Strategic 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 Strategic Investments AS.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Strategic Investments AS. 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Strategic Investments' price analysis, check to measure Strategic 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 Strategic Investments is operating at the current time. Most of Strategic Investments' value examination focuses on studying past and present price action to predict the probability of Strategic Investments' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Strategic Investments' price. Additionally, you may evaluate how the addition of Strategic Investments to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Strategic Investments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Strategic Investments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Strategic Investments' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.