Trend Micro Stock Volatility
| TMICF Stock | USD 56.81 0.00 0.00% |
We consider Trend Micro very steady. Trend Micro owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0358, which indicates the firm had a 0.0358% return per unit of risk over the last 3 months. We have found sixteen technical indicators for Trend Micro, which you can use to evaluate the volatility of the company. Please validate Trend Micro's Coefficient Of Variation of 2856.51, variance of 1.48, and Risk Adjusted Performance of 0.0264 to confirm if the risk estimate we provide is consistent with the expected return of 0.0447%. Key indicators related to Trend Micro's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Trend Micro Pink Sheet 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 Trend daily returns, and it is calculated using variance and standard deviation. We also use Trend's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Trend Micro volatility.
Trend |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Trend Micro 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 Trend Micro at lower prices. For example, an investor can purchase Trend 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 Trend Micro'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 against Trend Pink Sheet
Trend Micro Market Sensitivity And Downside Risk
Trend Micro's beta coefficient measures the volatility of Trend pink sheet 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 Trend pink sheet's returns against your selected market. In other words, Trend Micro's beta of -0.55 provides an investor with an approximation of how much risk Trend Micro pink sheet can potentially add to one of your existing portfolios. Trend Micro exhibits very low volatility with skewness of 0.28 and kurtosis of 12.95. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Trend Micro's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Trend Micro's pink sheet 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 Trend Micro Demand TrendCheck current 90 days Trend Micro correlation with market (NYSE Composite)Trend Beta |
Trend 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 | 1.25 |
It is essential to understand the difference between upside risk (as represented by Trend Micro's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Trend Micro's daily returns or price. Since the actual investment returns on holding a position in trend pink sheet 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 Trend Micro.
Trend Micro Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Trend Micro pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Trend Micro's price changes. Investors will then calculate the volatility of Trend Micro's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Trend Micro's volatility:
Historical Volatility
This type of pink sheet volatility measures Trend Micro's fluctuations based on previous trends. It's commonly used to predict Trend Micro's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Trend Micro's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Trend Micro'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. Trend Micro 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.
Trend Micro Projected Return Density Against Market
Assuming the 90 days horizon Trend Micro has a beta of -0.5493 . This usually implies as returns on the benchmark increase, returns on holding Trend Micro are expected to decrease at a much lower rate. During a bear market, however, Trend Micro 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 Trend Micro or Technology 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 Trend Micro's price will be affected by overall pink sheet 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 Trend pink sheet'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.
Trend Micro has an alpha of 0.074, implying that it can generate a 0.074 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Trend Micro Price Volatility?
Several factors can influence a pink sheet'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.Trend Micro Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Trend Micro is 2791.81. The daily returns are distributed with a variance of 1.56 and standard deviation of 1.25. The mean deviation of Trend Micro is currently at 0.38. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.61
α | Alpha over NYSE Composite | 0.07 | |
β | Beta against NYSE Composite | -0.55 | |
σ | Overall volatility | 1.25 | |
Ir | Information ratio | -0.04 |
Trend Micro Pink Sheet Return Volatility
Trend Micro historical daily return volatility represents how much of Trend Micro pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.2475% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6252% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Trend Micro Volatility
Volatility is a rate at which the price of Trend Micro 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 Trend Micro may increase or decrease. In other words, similar to Trend's beta indicator, it measures the risk of Trend Micro and helps estimate the fluctuations that may happen in a short period of time. So if prices of Trend Micro 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.Trend Micro Incorporated develops and sells security-related software for computers and the Internet primarily in Japan. The company was incorporated in 1965 and is headquartered in Tokyo, Japan. Trend Micro operates under SoftwareInfrastructure classification in the United States and is traded on OTC Exchange. It employs 7024 people.
Trend Micro'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 Trend Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Trend Micro's price varies over time.
3 ways to utilize Trend Micro's volatility to invest better
Higher Trend Micro's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Trend Micro 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. Trend Micro 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 Trend Micro investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Trend Micro'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 Trend Micro's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Trend Micro Investment Opportunity
Trend Micro has a volatility of 1.25 and is 1.98 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Trend Micro is lower than 11 percent of all global equities and portfolios over the last 90 days. You can use Trend Micro to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Trend Micro to be traded at $56.24 in 90 days.Very good diversification
The correlation between Trend Micro and NYA 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 Trend Micro and NYA in the same portfolio, assuming nothing else is changed.
Trend Micro Additional Risk Indicators
The analysis of Trend Micro'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 Trend Micro's investment and either accepting that risk or mitigating it. Along with some common measures of Trend Micro pink sheet'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 | 0.0264 | |||
| Market Risk Adjusted Performance | (0.05) | |||
| Mean Deviation | 0.3636 | |||
| Coefficient Of Variation | 2856.51 | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.48 | |||
| Information Ratio | (0.04) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Trend Micro 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.
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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 Trend Micro 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. Trend Micro'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, Trend Micro'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 Trend Micro.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Trend Micro. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. Note that the Trend Micro information on this page should be used as a complementary analysis to other Trend Micro's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Complementary Tools for Trend Pink Sheet analysis
When running Trend Micro's price analysis, check to measure Trend Micro'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 Trend Micro is operating at the current time. Most of Trend Micro's value examination focuses on studying past and present price action to predict the probability of Trend Micro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Trend Micro's price. Additionally, you may evaluate how the addition of Trend Micro to your portfolios can decrease your overall portfolio volatility.
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