51Job Stock Volatility

JOBS -  USA Stock  

USD 56.00  0.46  0.81%

51Job Inc ADR secures Sharpe Ratio (or Efficiency) of -0.13, which signifies that the company had -0.13% of return per unit of price deviation over the last 3 months. Macroaxis outlook to 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. 51Job Inc ADR exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm 51Job Inc ADR Standard Deviation of 3.19, coefficient of variation of (758.91), and Mean Deviation of 1.77 to double-check the risk estimate we provide.

51Job Volatility 

 
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51Job Inc 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 51Job daily returns, and it is calculated using variance and standard deviation. We also use 51Job's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 51Job Inc volatility.

30 Days Market Risk

Very steady

Chance of Distress

Very Low

30 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 51Job Inc 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 51Job Inc at lower prices. For example, an investor can purchase 51Job 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 51Job Inc'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.

51Job Inc Market Sensitivity And Downside Risk

51Job Inc's beta coefficient measures the volatility of 51Job 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 51Job stock's returns against your selected market. In other words, 51Job Inc's beta of -0.0058 provides an investor with an approximation of how much risk 51Job Inc stock can potentially add to one of your existing portfolios.
Let's try to break down what 51Job's beta means in this case. As returns on the market increase, returns on owning 51Job Inc are expected to decrease at a much lower rate. During the bear market, 51Job Inc is likely to outperform the market.
3 Months Beta |Analyze 51Job Inc ADR Demand Trend
Check current 90 days 51Job Inc correlation with market (DOW)

51Job Beta

    
  -0.0058  
51Job 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 51Job Inc's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of 51Job Inc stock's daily returns or price. Since the actual investment returns on holding a position in 51Job Inc 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 51Job Inc.

51Job Inc Implied Volatility

    
  77.29  
51Job Inc's implied volatility exposes the market's sentiment of 51Job Inc ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if 51Job Inc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that 51Job Inc stock will not fluctuate a lot when 51Job Inc's options are near their expiration.

51Job Inc ADR Stock Volatility Analysis

Volatility refers to the frequency at which 51Job Inc stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 51Job Inc's price changes. Investors will then calculate the volatility of 51Job Inc'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 51Job Inc's volatility:

Historical Volatility

This type of stock volatility measures 51Job Inc's fluctuations based on previous trends. It's commonly used to predict 51Job Inc'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 51Job Inc's 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. 51Job Inc Typical Price indicator is an average of each day price and can be used instead of closing price when creating different 51Job Inc ADR moving average lines. View also all equity analysis or get more info about typical price price transform indicator.

51Job Inc Projected Return Density Against Market

Given the investment horizon of 90 days 51Job Inc ADR has a beta of -0.0058 . This indicates as returns on benchmark increase, returns on holding 51Job Inc are expected to decrease at a much lower rate. During the bear market, however, 51Job Inc ADR 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 51Job Inc or Industrials 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 51Job Inc 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 51Job 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. 51Job Inc ADR is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
51Job Inc's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how 51Job Inc 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.

51Job Inc 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 51Job Inc or Industrials 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 51Job Inc 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 51Job 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.
Given the investment horizon of 90 days the coefficient of variation of 51Job Inc is -744.06. The daily returns are distributed with a variance of 10.35 and standard deviation of 3.22. The mean deviation of 51Job Inc ADR is currently at 1.79. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
-0.43
β
Beta against DOW-0.0058
σ
Overall volatility
3.22
Ir
Information ratio -0.12

51Job Inc Stock Return Volatility

51Job Inc historical daily return volatility represents how much 51Job Inc stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise inherits 3.2176% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.8252% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About 51Job Inc Volatility

Volatility is a rate at which the price of 51Job Inc 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 51Job Inc may increase or decrease. In other words, similar to 51Job's beta indicator, it measures the risk of 51Job Inc and helps estimate the fluctuations that may happen in a short period of time. So if prices of 51Job Inc 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.
Last ReportedProjected for 2021
Market Capitalization4.7 BB
51job, Inc., through its subsidiaries, provides integrated human resource services in the Peoples Republic of China. It offers its services through sales offices, and a national sales and customer service call center in Wuhan. 51job, Inc. was founded in 1998 and is headquartered in Shanghai, the Peoples Republic of China. 51Job Inc operates under Staffing Employment Services classification in the United States and is traded on NASDAQ Exchange. It employs 8431 people.

Nearest 51Job long CALL Option Payoff at Expiration

51Job Inc's implied volatility is one of the determining factors in the pricing options written on 51Job Inc ADR. Implied volatility approximates the future value of 51Job Incusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in 51Job Inc ADR over a specific time period.
View All 51Job options
2021-12-17 CALL at $35.0 is a CALL option contract on 51Job Inc's common stock with a strick price of 35.0 expiring on 2021-12-17. The contract was not traded in recent days and, as of today, has 11 days remaining before the expiration. The option is currently trading at a bid price of $18.6, and an ask price of $23.5. The implied volatility as of the 5th of December is 109.9972.
 Profit 
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      51Job Inc Price At Expiration 

51Job Inc Investment Opportunity

51Job Inc ADR has a volatility of 3.22 and is 3.88 times more volatile than DOW. 27  of all equities and portfolios are less risky than 51Job Inc. Compared to the overall equity markets, volatility of historical daily returns of 51Job Inc ADR is lower than 27 () of all global equities and portfolios over the last 90 days.

51Job Inc Additional Risk Indicators

The analysis of 51Job Inc'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 51Job Inc's investment and either accepting that risk or mitigating it. Along with some common measures of 51Job Inc 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(0.10)
Market Risk Adjusted Performance74.31
Mean Deviation1.77
Coefficient Of Variation(758.91)
Standard Deviation3.19
Variance10.2
Information Ratio(0.12)
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.

51Job Inc 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 51Job Inc 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. 51Job Inc'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, 51Job Inc'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 51Job Inc ADR.
Please see Risk vs Return Analysis. Note that the 51Job Inc ADR information on this page should be used as a complementary analysis to other 51Job Inc'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running 51Job Inc ADR price analysis, check to measure 51Job Inc'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 51Job Inc is operating at the current time. Most of 51Job Inc's value examination focuses on studying past and present price action to predict the probability of 51Job Inc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move 51Job Inc's price. Additionally, you may evaluate how the addition of 51Job Inc to your portfolios can decrease your overall portfolio volatility.
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Is 51Job Inc'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 51Job Inc. If investors know 51Job 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 51Job Inc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of 51Job Inc ADR is measured differently than its book value, which is the value of 51Job that is recorded on the company's balance sheet. Investors also form their own opinion of 51Job Inc's value that differs from its market value or its book value, called intrinsic value, which is 51Job Inc'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 51Job Inc's market value can be influenced by many factors that don't directly affect 51Job Inc'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 51Job Inc's value and its price as these two are different measures arrived at by different means. Investors typically determine 51Job Inc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 51Job Inc'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.