Aptiv PLC (Brazil) Volatility

APTV34 Stock  BRL 195.20  3.87  1.94%   
Aptiv PLC secures Sharpe Ratio (or Efficiency) of -0.18, which signifies that the company had a -0.18% return per unit of risk over the last 3 months. Aptiv PLC exposes twenty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Aptiv PLC's Mean Deviation of 0.3597, standard deviation of 0.8359, and Risk Adjusted Performance of (0.09) to double-check the risk estimate we provide. Key indicators related to Aptiv PLC's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Aptiv PLC 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 Aptiv daily returns, and it is calculated using variance and standard deviation. We also use Aptiv's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Aptiv PLC volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Aptiv PLC 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 Aptiv PLC at lower prices. For example, an investor can purchase Aptiv 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 Aptiv PLC'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 Aptiv Stock

  0.53RSUL4 Metalrgica RiosulensePairCorr
  0.51GDBR34 General DynamicsPairCorr
  0.49SNSY5 Sansuy SAPairCorr
  0.44L1EN34 LennarPairCorr

Aptiv PLC Market Sensitivity And Downside Risk

Aptiv PLC's beta coefficient measures the volatility of Aptiv 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 Aptiv stock's returns against your selected market. In other words, Aptiv PLC's beta of -0.12 provides an investor with an approximation of how much risk Aptiv PLC stock can potentially add to one of your existing portfolios. Aptiv PLC exhibits very low volatility with skewness of -4.23 and kurtosis of 21.62. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aptiv PLC'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 Aptiv PLC'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 Aptiv PLC Demand Trend
Check current 90 days Aptiv PLC correlation with market (NYSE Composite)

Aptiv Beta

    
  -0.12  
Aptiv 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

    
  0.86  
It is essential to understand the difference between upside risk (as represented by Aptiv PLC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Aptiv PLC's daily returns or price. Since the actual investment returns on holding a position in aptiv 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 Aptiv PLC.

Aptiv PLC Stock Volatility Analysis

Volatility refers to the frequency at which Aptiv PLC stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Aptiv PLC's price changes. Investors will then calculate the volatility of Aptiv PLC'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 Aptiv PLC's volatility:

Historical Volatility

This type of stock volatility measures Aptiv PLC's fluctuations based on previous trends. It's commonly used to predict Aptiv PLC'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 Aptiv PLC'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 Aptiv PLC'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. Aptiv PLC 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.

Aptiv PLC Projected Return Density Against Market

Assuming the 90 days trading horizon Aptiv PLC has a beta of -0.124 . This suggests as returns on benchmark increase, returns on holding Aptiv PLC are expected to decrease at a much lower rate. During the bear market, however, Aptiv PLC 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 Aptiv PLC or Consumer Cyclical 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 Aptiv PLC'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 Aptiv 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.
Aptiv PLC has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Aptiv PLC's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how aptiv 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 an Aptiv PLC 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.

Aptiv PLC Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Aptiv PLC is -550.95. The daily returns are distributed with a variance of 0.74 and standard deviation of 0.86. The mean deviation of Aptiv PLC is currently at 0.38. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.14
β
Beta against NYSE Composite-0.12
σ
Overall volatility
0.86
Ir
Information ratio -0.34

Aptiv PLC Stock Return Volatility

Aptiv PLC historical daily return volatility represents how much of Aptiv PLC stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.862% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Aptiv PLC Volatility

Volatility is a rate at which the price of Aptiv PLC 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 Aptiv PLC may increase or decrease. In other words, similar to Aptiv's beta indicator, it measures the risk of Aptiv PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of Aptiv PLC 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.
Aptiv PLC designs, manufacturers, and sells vehicle components worldwide. Aptiv PLC was founded in 2011 and is headquartered in Dublin, Ireland. APTIV PLC operates under Auto Parts classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 151000 people.
Aptiv PLC'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 Aptiv Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Aptiv PLC's price varies over time.

3 ways to utilize Aptiv PLC's volatility to invest better

Higher Aptiv PLC's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Aptiv PLC 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. Aptiv PLC 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 Aptiv PLC investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Aptiv PLC'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 Aptiv PLC's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Aptiv PLC Investment Opportunity

Aptiv PLC has a volatility of 0.86 and is 1.51 times more volatile than NYSE Composite. 7 percent of all equities and portfolios are less risky than Aptiv PLC. You can use Aptiv PLC to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Aptiv PLC to be traded at R$189.34 in 90 days.

Good diversification

The correlation between Aptiv PLC and NYA is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aptiv PLC and NYA in the same portfolio, assuming nothing else is changed.

Aptiv PLC Additional Risk Indicators

The analysis of Aptiv PLC'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 Aptiv PLC's investment and either accepting that risk or mitigating it. Along with some common measures of Aptiv PLC 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.

Aptiv PLC 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 Aptiv PLC 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. Aptiv PLC'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, Aptiv PLC'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 Aptiv PLC.
When determining whether Aptiv PLC is a strong investment it is important to analyze Aptiv PLC'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 Aptiv PLC's future performance. For an informed investment choice regarding Aptiv Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aptiv PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For information on how to trade Aptiv Stock refer to our How to Trade Aptiv Stock guide.
Note that the Aptiv PLC information on this page should be used as a complementary analysis to other Aptiv PLC'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 the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Complementary Tools for Aptiv Stock analysis

When running Aptiv PLC's price analysis, check to measure Aptiv PLC'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 Aptiv PLC is operating at the current time. Most of Aptiv PLC's value examination focuses on studying past and present price action to predict the probability of Aptiv PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aptiv PLC's price. Additionally, you may evaluate how the addition of Aptiv PLC to your portfolios can decrease your overall portfolio volatility.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
FinTech Suite
Use AI to screen and filter profitable investment opportunities
CEOs Directory
Screen CEOs from public companies around the world
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Please note, there is a significant difference between Aptiv PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Aptiv PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aptiv PLC'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.