Savola Group owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.13, which indicates the firm had -0.13% of return per unit of risk over the last 3 months. Our standpoint towards measuring 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. Savola Group exposes twenty-seven different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please validate Savola Risk Adjusted Performance of 0.016, coefficient of variation of 7142.94, and Semi Deviation of 2.36 to confirm the risk estimate we provide.
30 Days Market Risk
Chance of Distress
30 Days Economic Sensitivity
Savola 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 Savola daily returns, and it is calculated using variance and standard deviation. We also use Savola's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Savola volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Savola 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 Savola at lower prices. For example, an investor can purchase Savola 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 Savola'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 Savola Stock
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Savola Market Sensitivity And Downside Risk
Savola's beta coefficient measures the volatility of Savola stock compared to the systematic risk of the entire stock 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 Savola stock's returns against your selected market. In other words, Savola's beta of -0.11 provides an investor with an approximation of how much risk Savola stock can potentially add to one of your existing portfolios.Savola Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.01. However, we advise investors to further question Savola Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Savola'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 Savola'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 stocks as prices fall. 3 Months Beta |Analyze Savola Group Demand TrendCheck current 90 days Savola correlation with market (NYSE Composite)
Savola standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.
It is essential to understand the difference between upside risk (as represented by Savola's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Savola's daily returns or price. Since the actual investment returns on holding a position in savola 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 Savola.
Savola Group Stock Volatility Analysis
Volatility refers to the frequency at which Savola stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Savola's price changes. Investors will then calculate the volatility of Savola'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 Savola's volatility:
Historical VolatilityThis type of stock volatility measures Savola's fluctuations based on previous trends. It's commonly used to predict Savola's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for Savola'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 Savola's to be redeemed at a future date.
Savola Projected Return Density Against MarketAssuming the 90 days trading horizon Savola Group has a beta of -0.1094 . This suggests as returns on benchmark increase, returns on holding Savola are expected to decrease at a much lower rate. During the bear market, however, Savola Group 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 Savola or Consumer Defensive 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 Savola'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 Savola 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.The company has an alpha of 0.0119, implying that it can generate a 0.0119 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Savola's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how savola stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.
What Drives a Savola Price Volatility?Several factors can influence a stock's market volatility:
IndustrySpecific 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 environmentWhen 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 PerformanceSometimes 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.
Savola 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 Savola or Consumer Defensive 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 Savola'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 Savola 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 Savola is -793.4. The daily returns are distributed with a variance of 5.03 and standard deviation of 2.24. The mean deviation of Savola Group is currently at 1.75. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
Savola Stock Return VolatilitySavola historical daily return volatility represents how much of Savola stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 2.2419% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6206% volatility on return distribution over the 90 days horizon.
About Savola Volatility
Volatility is a rate at which the price of Savola 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 Savola may increase or decrease. In other words, similar to Savola's beta indicator, it measures the risk of Savola and helps estimate the fluctuations that may happen in a short period of time. So if prices of Savola 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.
Savola'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 Savola Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Savola's price varies over time.
3 ways to utilize Savola's volatility to invest betterHigher Savola's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Savola Group 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. Savola Group 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 Savola Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Savola'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 Savola's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Savola Investment OpportunitySavola Group has a volatility of 2.24 and is 3.61 times more volatile than NYSE Composite. 19 of all equities and portfolios are less risky than Savola. Compared to the overall equity markets, volatility of historical daily returns of Savola Group is lower than 19 () of all global equities and portfolios over the last 90 days. Use Savola Group to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Savola to be traded at 44.28 in 90 days.
Savola Additional Risk Indicators
The analysis of Savola'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 Savola's investment and either accepting that risk or mitigating it. Along with some common measures of Savola 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.
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.
Savola 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 Savola 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. Savola'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, Savola'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 Savola Group.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Savola Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Complementary Tools for Savola Stock analysis
When running Savola's price analysis, check to measure Savola'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 Savola is operating at the current time. Most of Savola's value examination focuses on studying past and present price action to predict the probability of Savola's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Savola's price. Additionally, you may evaluate how the addition of Savola to your portfolios can decrease your overall portfolio volatility.