Burberry OTC Stock Volatility

BURBY -  USA Stock  

USD 26.20  0.21  0.81%

Burberry Group Plc secures Sharpe Ratio (or Efficiency) of -0.0792, which signifies that the company had -0.0792% of return per unit of risk over the last 3 months. Macroaxis standpoint towards 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. Burberry Group Plc exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Burberry Group Plc risk adjusted performance of (0.00569), and Mean Deviation of 1.41 to double-check the risk estimate we provide.

Burberry Volatility 

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

30 Days Market Risk

Very steady

Chance of Distress

30 Days Economic Sensitivity

Slowly supersedes the market

Burberry Group Market Sensitivity And Downside Risk

Burberry Group's beta coefficient measures the volatility of Burberry otc 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 Burberry otc stock's returns against your selected market. In other words, Burberry Group's beta of 0.31 provides an investor with an approximation of how much risk Burberry Group otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Burberry's beta means in this case. As returns on the market increase, Burberry Group returns are expected to increase less than the market. However, during the bear market, the loss on holding Burberry Group will be expected to be smaller as well.
3 Months Beta |Analyze Burberry Group Plc Demand Trend
Check current 90 days Burberry Group correlation with market (DOW)

Burberry Beta

    
  0.31  
Burberry 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

    
  1.88  
It is essential to understand the difference between upside risk (as represented by Burberry Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Burberry Group stock's daily returns or price. Since the actual investment returns on holding a position in Burberry Group 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 Burberry Group.

Burberry Group Plc OTC Stock Volatility Analysis

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The output start index for this execution was zero with a total number of output elements of sixty-one. Burberry Group 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. View also all equity analysis or get more info about average price price transform indicator.

Burberry Group Projected Return Density Against Market

Assuming the 90 days horizon Burberry Group has a beta of 0.3117 suggesting as returns on the market go up, Burberry Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Burberry Group Plc 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 Burberry Group 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 Burberry Group 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 Burberry 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Burberry Group Plc is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Burberry Group OTC 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 Burberry Group 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 Burberry Group 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 Burberry 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 horizon the coefficient of variation of Burberry Group is -1261.96. The daily returns are distributed with a variance of 3.54 and standard deviation of 1.88. The mean deviation of Burberry Group Plc is currently at 1.36. For similar time horizon, the selected benchmark (DOW) has volatility of 0.71
α
Alpha over DOW
-0.05
β
Beta against DOW0.31
σ
Overall volatility
1.88
Ir
Information ratio -0.04

Burberry Group OTC Stock Return Volatility

Burberry Group historical daily return volatility represents how much Burberry Group stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company shows 1.8806% volatility of returns over 90 . By contrast, DOW inherits 0.7131% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Burberry Group Volatility

Volatility is a rate at which the price of Burberry Group 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 Burberry Group may increase or decrease. In other words, similar to Burberry's beta indicator, it measures the risk of Burberry Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of Burberry Group 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.
Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom. Burberry Group operates under Luxury Goods classification in the United States and is traded on OTC Exchange. It employs 9373 people.

Burberry Group Investment Opportunity

Burberry Group Plc has a volatility of 1.88 and is 2.65 times more volatile than DOW. 16  of all equities and portfolios are less risky than Burberry Group. Compared to the overall equity markets, volatility of historical daily returns of Burberry Group Plc is lower than 16 () of all global equities and portfolios over the last 90 days. Use Burberry Group Plc to enhance returns of your portfolios. The otc stock experiences a moderate upward volatility. Check odds of Burberry Group to be traded at $28.82 in 90 days. . Let's try to break down what Burberry's beta means in this case. As returns on the market increase, Burberry Group returns are expected to increase less than the market. However, during the bear market, the loss on holding Burberry Group will be expected to be smaller as well.

Average diversification

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

Burberry Group Additional Risk Indicators

The analysis of Burberry Group'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 Burberry Group's investment and either accepting that risk or mitigating it. Along with some common measures of Burberry Group 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 Performance(0.00569)
Market Risk Adjusted Performance(0.13)
Mean Deviation1.41
Coefficient Of Variation(5,865)
Standard Deviation1.94
Variance3.78
Information Ratio(0.036153)
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.

Burberry Group 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 Burberry Group 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. Burberry Group'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, Burberry Group'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 Burberry Group Plc.
Continue to Trending Equities. Note that the Burberry Group Plc information on this page should be used as a complementary analysis to other Burberry Group'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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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When running Burberry Group Plc price analysis, check to measure Burberry Group'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 Burberry Group is operating at the current time. Most of Burberry Group's value examination focuses on studying past and present price action to predict the probability of Burberry Group's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Burberry Group's price. Additionally, you may evaluate how the addition of Burberry Group to your portfolios can decrease your overall portfolio volatility.
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The market value of Burberry Group Plc is measured differently than its book value, which is the value of Burberry that is recorded on the company's balance sheet. Investors also form their own opinion of Burberry Group's value that differs from its market value or its book value, called intrinsic value, which is Burberry Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Burberry Group's market value can be influenced by many factors that don't directly affect Burberry Group Plc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Burberry Group's value and its price as these two are different measures arrived at by different means. Investors typically determine Burberry Group value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Burberry Group'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.