# Cargojet Stock Volatility

CJT Stock | CAD 90.04 1.06 1.16% |

Cargojet secures Sharpe Ratio (or Efficiency) of -0.0529, which signifies that the company had -0.0529% of return per unit of risk over the last 3 months. Our 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. Cargojet exposes fifteen different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm Cargojet Risk Adjusted Performance of (0.018871), mean deviation of 1.35, and Standard Deviation of 1.8 to double-check the risk estimate we provide.

30 Days Market Risk | Chance of Distress | 30 Days Economic Sensitivity |

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

Cargojet |

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cargojet 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 Cargojet at lower prices. For example, an investor can purchase Cargojet 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 Cargojet'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 Cargojet Stock

## Cargojet Market Sensitivity And Downside Risk

Cargojet's beta coefficient measures the volatility of Cargojet 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 Cargojet stock's returns against your selected market. In other words, Cargojet's beta of 0.46 provides an investor with an approximation of how much risk Cargojet stock can potentially add to one of your existing portfolios.

Cargojet exhibits very low volatility with skewness of 0.99 and kurtosis of 3.09. However, we advise investors to further study Cargojet technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cargojet'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 Cargojet'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 Cargojet Demand TrendCheck current 90 days Cargojet correlation with market (NYSE Composite)## Cargojet Beta |

Cargojet 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 | 1.84 |

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

## Cargojet Stock Volatility Analysis

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

### Historical Volatility

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

## Cargojet Projected Return Density Against Market

Assuming the 90 days trading horizon Cargojet has a beta of 0.4613 suggesting as returns on the market go up, Cargojet average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cargojet 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 Cargojet or Air Freight & Logistics 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 Cargojet'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 Cargojet 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. Cargojet is significantly underperforming NYSE Composite. Predicted Return Density |

Returns |

## What Drives a Cargojet 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.## Cargojet 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 Cargojet or Air Freight & Logistics 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 Cargojet'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 Cargojet 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 Cargojet is -1889.1. The daily returns are distributed with a variance of 3.37 and standard deviation of 1.84. The mean deviation of Cargojet is currently at 1.37. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62

α | Alpha over NYSE Composite | -0.07 | |

β | Beta against NYSE Composite | 0.46 | |

σ | Overall volatility | 1.84 | |

Ir | Information ratio | -0.03 |

## Cargojet Stock Return Volatility

Cargojet historical daily return volatility represents how much of Cargojet stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 1.8351% volatility of returns over the 90 days investment horizon. By contrast, NYSE Composite accepts 0.6206% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About Cargojet Volatility

Volatility is a rate at which the price of Cargojet 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 Cargojet may increase or decrease. In other words, similar to Cargojet's beta indicator, it measures the risk of Cargojet and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cargojet 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.Cargojet Inc. provides time sensitive overnight air cargo services in Canada. Cargojet Inc. is headquartered in Mississauga, Canada.Cargojet Inc. operates as a subsidiary of Flagship International Marketing Limited. CARGOJET INC operates under Integrated Freight Logistics classification in Canada and is traded on Toronto Stock Exchange. It employs 1182 people.

Cargojet'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 Cargojet Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cargojet's price varies over time.

## 3 ways to utilize Cargojet's volatility to invest better

Higher Cargojet's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cargojet 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. Cargojet 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 Cargojet investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cargojet'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 Cargojet's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## Cargojet Investment Opportunity

Cargojet has a volatility of 1.84 and is 2.97 times more volatile than NYSE Composite.**16**of all equities and portfolios are less risky than Cargojet. Compared to the overall equity markets, volatility of historical daily returns of Cargojet is lower than

**16 ()**of all global equities and portfolios over the last 90 days. Use Cargojet to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Cargojet to be traded at C$87.34 in 90 days.

### Average diversification

The correlation between Cargojet and NYA is

**0.16**(i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cargojet and NYA in the same portfolio, assuming nothing else is changed.## Cargojet Additional Risk Indicators

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

Risk Adjusted Performance | (0.018871) | |||

Market Risk Adjusted Performance | (0.17) | |||

Mean Deviation | 1.35 | |||

Coefficient Of Variation | (2,416) | |||

Standard Deviation | 1.8 | |||

Variance | 3.26 | |||

Information Ratio | (0.030564) |

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.

## Cargojet 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 Cargojet 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. Cargojet'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, Cargojet'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 Cargojet.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cargojet. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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

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