Fresenius Medical Care Stock Volatility
| FMS Stock | USD 21.48 0.93 4.53% |
We consider Fresenius Medical not too volatile. Fresenius Medical Care secures Sharpe Ratio (or Efficiency) of 0.062, which denotes the company had a 0.062% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Fresenius Medical Care, which you can use to evaluate the volatility of the firm. Please confirm Fresenius Medical's Mean Deviation of 1.65, coefficient of variation of 2068.03, and Downside Deviation of 2.05 to check if the risk estimate we provide is consistent with the expected return of 0.16%. Key indicators related to Fresenius Medical's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Fresenius Medical 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 Fresenius daily returns, and it is calculated using variance and standard deviation. We also use Fresenius's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Fresenius Medical volatility.
Fresenius |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Fresenius Medical 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 Fresenius Medical at lower prices. For example, an investor can purchase Fresenius 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 Fresenius Medical'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 Fresenius Stock
| 0.41 | WGS | GeneDx Holdings Corp Earnings Call This Week | PairCorr |
Fresenius Medical Market Sensitivity And Downside Risk
Fresenius Medical's beta coefficient measures the volatility of Fresenius 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 Fresenius stock's returns against your selected market. In other words, Fresenius Medical's beta of 0.81 provides an investor with an approximation of how much risk Fresenius Medical stock can potentially add to one of your existing portfolios. Fresenius Medical Care currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fresenius Medical'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 Fresenius Medical'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 Fresenius Medical Care Demand TrendCheck current 90 days Fresenius Medical correlation with market (NYSE Composite)Fresenius Beta |
Fresenius 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 | 2.55 |
It is essential to understand the difference between upside risk (as represented by Fresenius Medical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Fresenius Medical's daily returns or price. Since the actual investment returns on holding a position in fresenius 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 Fresenius Medical.
Using Fresenius Put Option to Manage Risk
Put options written on Fresenius Medical grant holders of the option the right to sell a specified amount of Fresenius Medical at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Fresenius Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Fresenius Medical's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Fresenius Medical will be realized, the loss incurred will be offset by the profits made with the option trade.
Fresenius Medical's PUT expiring on 2024-05-17
Profit |
| Fresenius Medical Price At Expiration |
Current Fresenius Medical Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $17.5 | -0.1307 | 0.0677 | 61 | 2024-05-17 | 0.05 - 0.25 | 0.22 | View |
Put | 2024-05-17 PUT at $20.0 | -0.3968 | 0.1382 | 1 | 2024-05-17 | 0.45 - 1.25 | 0.85 | View |
Fresenius Medical Care Stock Volatility Analysis
Volatility refers to the frequency at which Fresenius Medical stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Fresenius Medical's price changes. Investors will then calculate the volatility of Fresenius Medical'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 Fresenius Medical's volatility:
Historical Volatility
This type of stock volatility measures Fresenius Medical's fluctuations based on previous trends. It's commonly used to predict Fresenius Medical'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 Fresenius Medical'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 Fresenius Medical'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. Fresenius Medical Care 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.
Fresenius Medical Projected Return Density Against Market
Considering the 90-day investment horizon Fresenius Medical has a beta of 0.8074 . This usually indicates as returns on the market go up, Fresenius Medical average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Fresenius Medical Care will be expected to be much smaller as well.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 Fresenius Medical or Health Care Providers & 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 Fresenius Medical'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 Fresenius 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.
Fresenius Medical Care has an alpha of 0.0432, implying that it can generate a 0.0432 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Fresenius Medical 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.Fresenius Medical Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Fresenius Medical is 1613.91. The daily returns are distributed with a variance of 6.49 and standard deviation of 2.55. The mean deviation of Fresenius Medical Care is currently at 1.76. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.04 | |
β | Beta against NYSE Composite | 0.81 | |
σ | Overall volatility | 2.55 | |
Ir | Information ratio | 0.01 |
Fresenius Medical Stock Return Volatility
Fresenius Medical historical daily return volatility represents how much of Fresenius Medical stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.5471% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6371% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Fresenius Medical Volatility
Volatility is a rate at which the price of Fresenius Medical 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 Fresenius Medical may increase or decrease. In other words, similar to Fresenius's beta indicator, it measures the risk of Fresenius Medical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fresenius Medical 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 5.6 B | 9.6 B |
Fresenius Medical'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 Fresenius Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Fresenius Medical's price varies over time.
3 ways to utilize Fresenius Medical's volatility to invest better
Higher Fresenius Medical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Fresenius Medical Care 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. Fresenius Medical Care 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 Fresenius Medical Care investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Fresenius Medical'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 Fresenius Medical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Fresenius Medical Investment Opportunity
Fresenius Medical Care has a volatility of 2.55 and is 3.98 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Fresenius Medical Care is lower than 22 percent of all global equities and portfolios over the last 90 days. You can use Fresenius Medical Care to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Fresenius Medical to be traded at $26.85 in 90 days.Modest diversification
The correlation between Fresenius Medical Care and NYA is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and NYA in the same portfolio, assuming nothing else is changed.
Fresenius Medical Additional Risk Indicators
The analysis of Fresenius Medical'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 Fresenius Medical's investment and either accepting that risk or mitigating it. Along with some common measures of Fresenius Medical 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 | 0.0372 | |||
| Market Risk Adjusted Performance | 0.1428 | |||
| Mean Deviation | 1.65 | |||
| Semi Deviation | 1.91 | |||
| Downside Deviation | 2.05 | |||
| Coefficient Of Variation | 2068.03 | |||
| Standard Deviation | 2.42 |
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.
Fresenius Medical 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 Fresenius Medical 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. Fresenius Medical'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, Fresenius Medical'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 Fresenius Medical Care.
When determining whether Fresenius Medical Care is a strong investment it is important to analyze Fresenius Medical's 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 Fresenius Medical's future performance. For an informed investment choice regarding Fresenius Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fresenius Medical Care. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Complementary Tools for Fresenius Stock analysis
When running Fresenius Medical's price analysis, check to measure Fresenius Medical'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 Fresenius Medical is operating at the current time. Most of Fresenius Medical's value examination focuses on studying past and present price action to predict the probability of Fresenius Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fresenius Medical's price. Additionally, you may evaluate how the addition of Fresenius Medical to your portfolios can decrease your overall portfolio volatility.
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Is Fresenius Medical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fresenius Medical. If investors know Fresenius will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fresenius Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.353 | Dividend Share 1.19 | Earnings Share 0.91 | Revenue Per Share 33.1505 | Quarterly Revenue Growth (0) |
The market value of Fresenius Medical Care is measured differently than its book value, which is the value of Fresenius that is recorded on the company's balance sheet. Investors also form their own opinion of Fresenius Medical's value that differs from its market value or its book value, called intrinsic value, which is Fresenius Medical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fresenius Medical's market value can be influenced by many factors that don't directly affect Fresenius Medical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fresenius Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fresenius Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fresenius Medical's 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.