Concord Stock Volatility

CCM Stock  USD 1.33  0.01  0.75%   
We consider Concord Medical abnormally volatile. Concord Medical Services secures Sharpe Ratio (or Efficiency) of 0.0084, which signifies that the company had 0.0084% of return per unit of risk over the last 3 months. Our standpoint 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-eight technical indicators for Concord Medical Services, which you can use to evaluate the future volatility of the firm. Please confirm Concord Medical Services Mean Deviation of 5.54, risk adjusted performance of 0.0221, and Downside Deviation of 7.32 to double-check if the risk estimate we provide is consistent with the expected return of 0.0619%.
  
Concord Medical 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 Concord daily returns, and it is calculated using variance and standard deviation. We also use Concord's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Concord Medical volatility.

30 Days Market Risk

Abnormally volatile

Chance of Distress

Average

30 Days Economic Sensitivity

Very regressive towards the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Concord Medical 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 Concord Medical at lower prices. For example, an investor can purchase Concord 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 Concord Medical'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.

Concord Medical Market Sensitivity And Downside Risk

Concord Medical's beta coefficient measures the volatility of Concord 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 Concord stock's returns against your selected market. In other words, Concord Medical's beta of -1.53 provides an investor with an approximation of how much risk Concord Medical stock can potentially add to one of your existing portfolios.
Concord Medical Services is displaying above-average volatility over the selected time horizon. Investors should scrutinize Concord Medical Services independently to ensure intended market timing strategies are aligned with expectations about Concord Medical volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Concord Medical'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 Concord Medical'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 Concord Medical Services Demand Trend
Check current 90 days Concord Medical correlation with market (NYSE Composite)

Concord Beta

    
  -1.53  
Concord 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

    
  7.4  
It is essential to understand the difference between upside risk (as represented by Concord Medical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Concord Medical's daily returns or price. Since the actual investment returns on holding a position in concord 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 Concord Medical.

Concord Medical Services Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Concord Medical's fluctuations based on previous trends. It's commonly used to predict Concord Medical'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 Concord Medical'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 Concord Medical'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. Concord Medical Services 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.
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Concord Medical Projected Return Density Against Market

Considering the 90-day investment horizon Concord Medical Services has a beta of -1.5289 suggesting as returns on its benchmark rise, returns on holding Concord Medical Services are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Concord Medical is expected to outperform its benchmark.
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 Concord Medical or Health Care Providers & Services 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 Concord Medical'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 Concord 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 0.3157, implying that it can generate a 0.32 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Concord Medical's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how concord 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 Concord Medical 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.

Concord Medical 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 Concord Medical or Health Care Providers & Services 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 Concord Medical'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 Concord 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. Considering the 90-day investment horizon the coefficient of variation of Concord Medical is 11952.4. The daily returns are distributed with a variance of 54.7 and standard deviation of 7.4. The mean deviation of Concord Medical Services is currently at 4.94. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.12
α
Alpha over NYSE Composite
0.32
β
Beta against NYSE Composite-1.53
σ
Overall volatility
7.40
Ir
Information ratio -0.0078

Concord Medical Stock Return Volatility

Concord Medical historical daily return volatility represents how much of Concord Medical stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 7.3958% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 1.0965% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About Concord Medical Volatility

Volatility is a rate at which the price of Concord Medical 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 Concord Medical may increase or decrease. In other words, similar to Concord's beta indicator, it measures the risk of Concord Medical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Concord Medical 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.
Concord Medical Services Holdings Limited, together its subsidiaries, operates a network of radiotherapy and diagnostic imaging centers in the Peoples Republic of China. Concord Medical Services Holdings Limited was founded in 1997 and is headquartered in Beijing, the Peoples Republic of China. Concord Medical operates under Medical Care Facilities classification in the United States and is traded on New York Stock Exchange. It employs 972 people.
Concord Medical'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 Concord Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Concord Medical's price varies over time.

3 ways to utilize Concord Medical's volatility to invest better

Higher Concord Medical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Concord Medical Services 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. Concord Medical Services 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 Concord Medical Services investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Concord Medical'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 Concord Medical'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.

Concord Medical Investment Opportunity

Concord Medical Services has a volatility of 7.4 and is 6.73 times more volatile than NYSE Composite. 64  of all equities and portfolios are less risky than Concord Medical. Compared to the overall equity markets, volatility of historical daily returns of Concord Medical Services is higher than 64 () of all global equities and portfolios over the last 90 days. Use Concord Medical Services to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Concord Medical to be traded at $1.3034 in 90 days.

Very good diversification

The correlation between Concord Medical Services and NYA is -0.21 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and NYA in the same portfolio, assuming nothing else is changed.

Concord Medical Additional Risk Indicators

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

Concord Medical 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 Concord Medical 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. Concord Medical'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, Concord Medical'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 Concord Medical Services.
Continue to Trending Equities. Note that the Concord Medical Services information on this page should be used as a complementary analysis to other Concord Medical'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Concord Medical Services price analysis, check to measure Concord Medical'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 Concord Medical is operating at the current time. Most of Concord Medical's value examination focuses on studying past and present price action to predict the probability of Concord Medical's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Concord Medical's price. Additionally, you may evaluate how the addition of Concord Medical to your portfolios can decrease your overall portfolio volatility.
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Is Concord Medical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Concord Medical. If investors know Concord will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Concord Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
58.2 M
Quarterly Revenue Growth
(0.25) 
Return On Assets
(0.05) 
Return On Equity
(0.23) 
The market value of Concord Medical Services is measured differently than its book value, which is the value of Concord that is recorded on the company's balance sheet. Investors also form their own opinion of Concord Medical's value that differs from its market value or its book value, called intrinsic value, which is Concord Medical'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 Concord Medical's market value can be influenced by many factors that don't directly affect Concord Medical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Concord Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine Concord Medical value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Concord Medical'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.