CATHAY SECURITIES (Taiwan) Volatility

080984 -  Taiwan Stock  

TWD 0.02  0.00  0.00%

CATHAY SECURITIES secures Sharpe Ratio (or Efficiency) of -0.58, which signifies that the company had -0.58% of return per unit of volatility over the last 3 months. Macroaxis viewpoint regarding foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. CATHAY SECURITIES CORPORATION exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm CATHAY SECURITIES to double-check the risk estimate we provide.

CATHAY Volatility 

 
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CATHAY SECURITIES 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 CATHAY daily returns, and it is calculated using variance and standard deviation. We also use CATHAY's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CATHAY SECURITIES volatility.

CATHAY SECURITIES Stock Volatility Analysis

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CATHAY SECURITIES Projected Return Density Against Market

Assuming the 90 days trading horizon the stock has the beta coefficient of 1.2996 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, CATHAY SECURITIES will likely underperform.
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 CATHAY SECURITIES or CATHAY SECURITIES CORPORATION 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 CATHAY SECURITIES stock'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 CATHAY 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.
It does not look like the company alpha can have any bearing on the current equity valuation.
 Predicted Return Density 
      Returns 

CATHAY SECURITIES Stock Risk Measures

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 CATHAY SECURITIES or CATHAY SECURITIES CORPORATION 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 CATHAY SECURITIES stock'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 CATHAY 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.
Assuming the 90 days trading horizon the coefficient of variation of CATHAY SECURITIES is -173.21. The daily returns are distributed with a variance of 2668.51 and standard deviation of 51.66. The mean deviation of CATHAY SECURITIES CORPORATION is currently at 39.77. For similar time horizon, the selected benchmark (DOW) has volatility of 0.71
α
Alpha over DOW
0.00
β
Beta against DOW1.30
σ
Overall volatility
51.66
Ir
Information ratio 0.00

CATHAY SECURITIES Stock Return Volatility

CATHAY SECURITIES historical daily return volatility represents how much CATHAY SECURITIES stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company accepts 51.6577% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 0.7131% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About CATHAY SECURITIES Volatility

Volatility is a rate at which the price of CATHAY SECURITIES 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 CATHAY SECURITIES may increase or decrease. In other words, similar to CATHAY's beta indicator, it measures the risk of CATHAY SECURITIES and helps estimate the fluctuations that may happen in a short period of time. So if prices of CATHAY SECURITIES 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.

CATHAY SECURITIES Investment Opportunity

CATHAY SECURITIES CORPORATION has a volatility of 51.66 and is 72.76 times more volatile than DOW. 96  of all equities and portfolios are less risky than CATHAY SECURITIES. Compared to the overall equity markets, volatility of historical daily returns of CATHAY SECURITIES CORPORATION is higher than 96 () of all global equities and portfolios over the last 90 days. Use CATHAY SECURITIES CORPORATION to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of CATHAY SECURITIES to be traded at NT$0.0198 in 90 days. . Let's try to break down what CATHAY's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CATHAY SECURITIES will likely underperform.

Significant diversification

The correlation between CATHAY SECURITIES CORPORATION and DJI is Significant diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CATHAY SECURITIES CORPORATION and DJI in the same portfolio assuming nothing else is changed.

CATHAY SECURITIES Additional Risk Indicators

The analysis of CATHAY SECURITIES'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 CATHAY SECURITIES's investment and either accepting that risk or mitigating it. Along with some common measures of CATHAY SECURITIES stock 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.
Coefficient Of Variation0.0
Maximum Drawdown0.0
Potential Upside0.0
Skewness0.0
Kurtosis0.0
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

CATHAY SECURITIES 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 CATHAY SECURITIES 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. CATHAY SECURITIES'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, CATHAY SECURITIES'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 CATHAY SECURITIES CORPORATION.
Please continue to Trending Equities. Note that the CATHAY SECURITIES information on this page should be used as a complementary analysis to other CATHAY SECURITIES'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Tools for CATHAY Stock

When running CATHAY SECURITIES price analysis, check to measure CATHAY SECURITIES'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 CATHAY SECURITIES is operating at the current time. Most of CATHAY SECURITIES's value examination focuses on studying past and present price action to predict the probability of CATHAY SECURITIES's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move CATHAY SECURITIES's price. Additionally, you may evaluate how the addition of CATHAY SECURITIES to your portfolios can decrease your overall portfolio volatility.
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