Zhone risk analysis

Use Zhone Technologies Inc risk analysis within your current portfolio analysis strategies to protect against small markets fluctuations and to find right Stock diversification strategy.  Evaluate Positions

Projected Return Density against Market

Given investment horizon of 30 days, the stock has beta cooficient of 1.95 . This means as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Zhone will likely underperform. In addition to that, Zhone Technologies Inc has alpha of 1.95 implying that it can potentially generate 1.95% excess return over S&P 500 after adjusting for the inherited market risk (beta).Given investment horizon of 30 days, the coefficient of variation of Zhone is -1442.94. The daily returns are destributed with a variance of 16.0 and standard deviation of 4.0. The mean deviation of Zhone Technologies Inc is currently at 3.19. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.57

	(alpha)	=	1.95	Details
	(beta)	=	1.95	Details
	(volatility)	=	4.00	Details

Actual Return Volatility

Zhone Technologies Inc inherits 4.0% risk (volatility on return distribution) over the 30 days horizon. S&P 500 shows 0.57% volatility of returns over 30 trading days.