AVERY DENNISDRN (Brazil) Volatility

A1VY34 -  Brazil Stock  

BRL 591.60  0.000024  0.00%

AVERY DENNISDRN appears to be very steady, given 3 months investment horizon. AVERY DENNISDRN secures Sharpe Ratio (or Efficiency) of 0.22, which signifies that the company had 0.22% of return per unit of risk over the last 3 months. Our approach towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for AVERY DENNISDRN, which you can use to evaluate the future volatility of the firm. Please makes use of AVERY DENNISDRN's risk adjusted performance of 0.0396, and Mean Deviation of 0.3979 to double-check if our risk estimates are consistent with your expectations.

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

720 Days Market Risk

Very steady

Chance of Distress

720 Days Economic Sensitivity

Moves indifferently to market moves

AVERY DENNISDRN Market Sensitivity And Downside Risk

AVERY DENNISDRN's beta coefficient measures the volatility of AVERY 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 AVERY stock's returns against your selected market. In other words, AVERY DENNISDRN's beta of -0.18 provides an investor with an approximation of how much risk AVERY DENNISDRN stock can potentially add to one of your existing portfolios.
Let's try to break down what AVERY's beta means in this case. As returns on the market increase, returns on owning AVERY DENNISDRN are expected to decrease at a much lower rate. During the bear market, AVERY DENNISDRN is likely to outperform the market.
3 Months Beta |Analyze AVERY DENNISDRN Demand Trend
Check current 90 days AVERY DENNISDRN correlation with market (DOW)

AVERY Beta

    
  -0.18  
AVERY 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.

Standard Deviation

    
  1.04  
It is essential to understand the difference between upside risk (as represented by AVERY DENNISDRN's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of AVERY DENNISDRN stock's daily returns or price. Since the actual investment returns on holding a position in AVERY DENNISDRN 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 AVERY DENNISDRN.

AVERY DENNISDRN Stock Volatility Analysis

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AVERY DENNISDRN Projected Return Density Against Market

Assuming the 90 days trading horizon AVERY DENNISDRN has a beta of -0.1801 . This suggests as returns on benchmark increase, returns on holding AVERY DENNISDRN are expected to decrease at a much lower rate. During the bear market, however, AVERY DENNISDRN 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 AVERY DENNISDRN or Industrials 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 AVERY DENNISDRN 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 AVERY 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 0.058, implying that it can generate a 0.058 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

AVERY DENNISDRN 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 AVERY DENNISDRN or Industrials 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 AVERY DENNISDRN 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 AVERY 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 AVERY DENNISDRN is 457.75. The daily returns are distributed with a variance of 1.08 and standard deviation of 1.04. The mean deviation of AVERY DENNISDRN is currently at 0.41. For similar time horizon, the selected benchmark (DOW) has volatility of 0.69
α
Alpha over DOW
0.06
β
Beta against DOW-0.18
σ
Overall volatility
1.04
Ir
Information ratio 0.0263

AVERY DENNISDRN Stock Return Volatility

AVERY DENNISDRN historical daily return volatility represents how much AVERY DENNISDRN 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 1.0402% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 0.6741% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About AVERY DENNISDRN Volatility

Volatility is a rate at which the price of AVERY DENNISDRN 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 AVERY DENNISDRN may increase or decrease. In other words, similar to AVERY's beta indicator, it measures the risk of AVERY DENNISDRN and helps estimate the fluctuations that may happen in a short period of time. So if prices of AVERY DENNISDRN 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.
Avery Dennison Corporation manufactures and markets pressure-sensitive materials in the United States, Europe, Asia, Latin America, and internationally. Avery Dennison Corporation was founded in 1935 and is headquartered in Glendale, California. AVERY DENNISDRN operates under Business Equipment Supplies classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 31840 people.

AVERY DENNISDRN Investment Opportunity

AVERY DENNISDRN has a volatility of 1.04 and is 1.55 times more volatile than DOW. of all equities and portfolios are less risky than AVERY DENNISDRN. Compared to the overall equity markets, volatility of historical daily returns of AVERY DENNISDRN is lower than 8 () of all global equities and portfolios over the last 90 days. Use AVERY DENNISDRN to enhance returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of AVERY DENNISDRN to be traded at R$621.18 in 90 days. . Let's try to break down what AVERY's beta means in this case. As returns on the market increase, returns on owning AVERY DENNISDRN are expected to decrease at a much lower rate. During the bear market, AVERY DENNISDRN is likely to outperform the market.

Good diversification

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

AVERY DENNISDRN Additional Risk Indicators

The analysis of AVERY DENNISDRN'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 AVERY DENNISDRN's investment and either accepting that risk or mitigating it. Along with some common measures of AVERY DENNISDRN 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.
Risk Adjusted Performance0.0396
Market Risk Adjusted Performance(0.29)
Mean Deviation0.3979
Coefficient Of Variation1979.59
Standard Deviation1.27
Variance1.62
Information Ratio0.0263
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.

AVERY DENNISDRN 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 AVERY DENNISDRN 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. AVERY DENNISDRN'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, AVERY DENNISDRN'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 AVERY DENNISDRN.
Please continue to Trending Equities. Note that the AVERY DENNISDRN information on this page should be used as a complementary analysis to other AVERY DENNISDRN'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Tools for AVERY Stock

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