China OTC Stock Volatility

CHFHY
 Stock
  

USD 7.31  0.00  0.00%   

We consider China Foods slightly risky. China Foods secures Sharpe Ratio (or Efficiency) of 0.0158, which signifies that the company had 0.0158% 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-one technical indicators for China Foods, which you can use to evaluate the future volatility of the firm. Please confirm China Foods Mean Deviation of 1.6, downside deviation of 8.3, and Risk Adjusted Performance of 0.0117 to double-check if the risk estimate we provide is consistent with the expected return of 0.0509%.
  
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China Foods 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 China daily returns, and it is calculated using variance and standard deviation. We also use China's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of China Foods volatility.

30 Days Market Risk

Slightly risky

Chance of Distress

Below Average

30 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as China Foods 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 China Foods at lower prices. For example, an investor can purchase China 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 China Foods' 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.

China Foods Market Sensitivity And Downside Risk

China Foods' beta coefficient measures the volatility of China 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 China otc stock's returns against your selected market. In other words, China Foods's beta of 0.0026 provides an investor with an approximation of how much risk China Foods otc stock can potentially add to one of your existing portfolios.
Let's try to break down what China's beta means in this case. As returns on the market increase, China Foods returns are expected to increase less than the market. However, during the bear market, the loss on holding China Foods will be expected to be smaller as well.
3 Months Beta |Analyze China Foods Demand Trend
Check current 90 days China Foods correlation with market (DOW)

China Beta

    
  0.0026  
China 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

    
  3.22  
It is essential to understand the difference between upside risk (as represented by China Foods's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of China Foods stock's daily returns or price. Since the actual investment returns on holding a position in China Foods 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 China Foods.

China Foods OTC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures China Foods' fluctuations based on previous trends. It's commonly used to predict China Foods' 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 China Foods' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of China Foods high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only China Foods closing price as input.
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China Foods Projected Return Density Against Market

Assuming the 90 days horizon China Foods has a beta of 0.0026 suggesting as returns on the market go up, China Foods average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding China Foods 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 China Foods 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 China Foods 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 China 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 0.0048, implying that it can generate a 0.0048 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
China Foods' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how China Foods 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 Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

China Foods 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 China Foods 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 China Foods 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 China 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 China Foods is 6329.12. The daily returns are distributed with a variance of 10.37 and standard deviation of 3.22. The mean deviation of China Foods is currently at 1.42. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
0.0048
β
Beta against DOW0.0026
σ
Overall volatility
3.22
Ir
Information ratio 0.05

China Foods OTC Stock Return Volatility

China Foods historical daily return volatility represents how much China Foods 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 3.2205% volatility of returns over 90 . By contrast, DOW inherits 1.449% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About China Foods Volatility

Volatility is a rate at which the price of China Foods 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 China Foods may increase or decrease. In other words, similar to China's beta indicator, it measures the risk of China Foods and helps estimate the fluctuations that may happen in a short period of time. So if prices of China Foods 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.
China Foods Limited, an investment holding company, manufactures, distributes, markets, and sells Coca-Cola series products in the Peoples Republic of China. China Foods Limited is a subsidiary of China Foods Limited. China Foods operates under BeveragesNon-Alcoholic classification in the United States and is traded on OTC Exchange. It employs 19189 people.

China Foods Investment Opportunity

China Foods has a volatility of 3.22 and is 2.22 times more volatile than DOW. 27  of all equities and portfolios are less risky than China Foods. Compared to the overall equity markets, volatility of historical daily returns of China Foods is lower than 27 () of all global equities and portfolios over the last 90 days.

China Foods Additional Risk Indicators

The analysis of China Foods' 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 China Foods' investment and either accepting that risk or mitigating it. Along with some common measures of China Foods 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 Performance0.0117
Market Risk Adjusted Performance1.65
Mean Deviation1.6
Semi Deviation2.67
Downside Deviation8.3
Coefficient Of Variation25074.82
Standard Deviation3.58
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.

China Foods 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 China Foods 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. China Foods' 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, China Foods' 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 China Foods.
Continue to Trending Equities. Note that the China Foods information on this page should be used as a complementary analysis to other China Foods' 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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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When running China Foods price analysis, check to measure China Foods' 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 China Foods is operating at the current time. Most of China Foods' value examination focuses on studying past and present price action to predict the probability of China Foods' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move China Foods' price. Additionally, you may evaluate how the addition of China Foods to your portfolios can decrease your overall portfolio volatility.
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Is China Foods' 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 China Foods. If investors know China 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 China Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.003
Market Capitalization
B
Quarterly Revenue Growth YOY
0.091
Return On Assets
0.0559
Return On Equity
0.13
The market value of China Foods is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Foods' value that differs from its market value or its book value, called intrinsic value, which is China Foods' 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 China Foods' market value can be influenced by many factors that don't directly affect China Foods' 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 China Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine China Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Foods' 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.