Straumann Holding (Switzerland) Volatility
| STMN Stock | CHF 134.40 0.60 0.44% |
We consider Straumann Holding very steady. Straumann Holding owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0177, which indicates the firm had a 0.0177% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Straumann Holding AG, which you can use to evaluate the volatility of the company. Please validate Straumann Holding's Semi Deviation of 1.8, coefficient of variation of 1524.89, and Risk Adjusted Performance of 0.0469 to confirm if the risk estimate we provide is consistent with the expected return of 0.0303%. Key indicators related to Straumann Holding's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Straumann Holding 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 Straumann daily returns, and it is calculated using variance and standard deviation. We also use Straumann's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Straumann Holding volatility.
Straumann |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Straumann Holding 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 Straumann Holding at lower prices. For example, an investor can purchase Straumann 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 Straumann Holding'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 together with Straumann Stock
Straumann Holding Market Sensitivity And Downside Risk
Straumann Holding's beta coefficient measures the volatility of Straumann 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 Straumann stock's returns against your selected market. In other words, Straumann Holding's beta of 0.83 provides an investor with an approximation of how much risk Straumann Holding stock can potentially add to one of your existing portfolios. Straumann Holding AG has relatively low volatility with skewness of -0.22 and kurtosis of -0.54. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Straumann Holding'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 Straumann Holding'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 Straumann Holding Demand TrendCheck current 90 days Straumann Holding correlation with market (NYSE Composite)Straumann Beta |
Straumann 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 | 1.71 |
It is essential to understand the difference between upside risk (as represented by Straumann Holding's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Straumann Holding's daily returns or price. Since the actual investment returns on holding a position in straumann 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 Straumann Holding.
Straumann Holding Stock Volatility Analysis
Volatility refers to the frequency at which Straumann Holding stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Straumann Holding's price changes. Investors will then calculate the volatility of Straumann Holding'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 Straumann Holding's volatility:
Historical Volatility
This type of stock volatility measures Straumann Holding's fluctuations based on previous trends. It's commonly used to predict Straumann Holding'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 Straumann Holding'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 Straumann Holding'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. Straumann Holding 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.
Straumann Holding Projected Return Density Against Market
Assuming the 90 days trading horizon Straumann Holding has a beta of 0.8272 . This usually implies as returns on the market go up, Straumann Holding average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Straumann Holding AG 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 Straumann Holding or Healthcare 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 Straumann Holding'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 Straumann 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.
Straumann Holding AG has an alpha of 0.054, implying that it can generate a 0.054 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Straumann Holding 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.Straumann Holding Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Straumann Holding is 5663.46. The daily returns are distributed with a variance of 2.94 and standard deviation of 1.71. The mean deviation of Straumann Holding AG is currently at 1.39. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.05 | |
β | Beta against NYSE Composite | 0.83 | |
σ | Overall volatility | 1.71 | |
Ir | Information ratio | 0.03 |
Straumann Holding Stock Return Volatility
Straumann Holding historical daily return volatility represents how much of Straumann Holding stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 1.7136% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Straumann Holding Volatility
Volatility is a rate at which the price of Straumann Holding 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 Straumann Holding may increase or decrease. In other words, similar to Straumann's beta indicator, it measures the risk of Straumann Holding and helps estimate the fluctuations that may happen in a short period of time. So if prices of Straumann Holding 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.Straumann Holding AG provides tooth replacement and orthodontic solutions worldwide. Straumann Holding AG was founded in 1954 and is headquartered in Basel, Switzerland. STRAUMANN operates under Medical Instruments Supplies classification in Switzerland and is traded on Switzerland Exchange. It employs 8169 people.
Straumann Holding'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 Straumann Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Straumann Holding's price varies over time.
3 ways to utilize Straumann Holding's volatility to invest better
Higher Straumann Holding's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Straumann Holding 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. Straumann Holding 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 Straumann Holding investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Straumann Holding'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 Straumann Holding's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Straumann Holding Investment Opportunity
Straumann Holding AG has a volatility of 1.71 and is 2.76 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Straumann Holding AG is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use Straumann Holding AG to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Straumann Holding to be traded at ₣133.06 in 90 days.Weak diversification
The correlation between Straumann Holding AG and NYA is 0.3 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and NYA in the same portfolio, assuming nothing else is changed.
Straumann Holding Additional Risk Indicators
The analysis of Straumann Holding'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 Straumann Holding's investment and either accepting that risk or mitigating it. Along with some common measures of Straumann Holding 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 | 0.0469 | |||
| Market Risk Adjusted Performance | 0.1339 | |||
| Mean Deviation | 1.4 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 1524.89 | |||
| Standard Deviation | 1.71 |
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.
Straumann Holding 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 Straumann Holding 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. Straumann Holding'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, Straumann Holding'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 Straumann Holding AG.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Straumann Holding AG. 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Complementary Tools for Straumann Stock analysis
When running Straumann Holding's price analysis, check to measure Straumann Holding'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 Straumann Holding is operating at the current time. Most of Straumann Holding's value examination focuses on studying past and present price action to predict the probability of Straumann Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Straumann Holding's price. Additionally, you may evaluate how the addition of Straumann Holding to your portfolios can decrease your overall portfolio volatility.
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