Longfor Properties Co Stock Volatility
| LGFRY Stock | USD 11.94 0.04 0.34% |
We consider Longfor Properties somewhat reliable. Longfor Properties has Sharpe Ratio of 0.0089, which conveys that the firm had a 0.0089% return per unit of risk over the last 3 months. We have found thirty technical indicators for Longfor Properties, which you can use to evaluate the volatility of the firm. Please verify Longfor Properties' Mean Deviation of 3.32, downside deviation of 4.23, and Risk Adjusted Performance of 0.0333 to check out if the risk estimate we provide is consistent with the expected return of 0.0371%. Key indicators related to Longfor Properties' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Longfor Properties Pink Sheet 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 Longfor daily returns, and it is calculated using variance and standard deviation. We also use Longfor's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Longfor Properties volatility.
Longfor |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Longfor Properties 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 Longfor Properties at lower prices. For example, an investor can purchase Longfor 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 Longfor Properties' 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.
Longfor Properties Market Sensitivity And Downside Risk
Longfor Properties' beta coefficient measures the volatility of Longfor pink sheet compared to the systematic risk of the entire 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 Longfor pink sheet's returns against your selected market. In other words, Longfor Properties's beta of 0.27 provides an investor with an approximation of how much risk Longfor Properties pink sheet can potentially add to one of your existing portfolios. Longfor Properties Co exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Longfor Properties' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Longfor Properties' pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Longfor Properties Demand TrendCheck current 90 days Longfor Properties correlation with market (NYSE Composite)Longfor Beta |
Longfor standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 4.2 |
It is essential to understand the difference between upside risk (as represented by Longfor Properties's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Longfor Properties' daily returns or price. Since the actual investment returns on holding a position in longfor pink sheet 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 Longfor Properties.
Longfor Properties Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Longfor Properties pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Longfor Properties' price changes. Investors will then calculate the volatility of Longfor Properties' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Longfor Properties' volatility:
Historical Volatility
This type of pink sheet volatility measures Longfor Properties' fluctuations based on previous trends. It's commonly used to predict Longfor Properties' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Longfor Properties' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Longfor Properties' 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. Longfor Properties 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.
Longfor Properties Projected Return Density Against Market
Assuming the 90 days horizon Longfor Properties has a beta of 0.2721 . This indicates as returns on the market go up, Longfor Properties average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Longfor Properties Co 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 Longfor Properties or Real Estate 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 Longfor Properties' price will be affected by overall pink sheet 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 Longfor pink sheet'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.
Longfor Properties Co has an alpha of 0.1466, implying that it can generate a 0.15 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Longfor Properties Price Volatility?
Several factors can influence a pink sheet'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.Longfor Properties Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Longfor Properties is 11299.14. The daily returns are distributed with a variance of 17.61 and standard deviation of 4.2. The mean deviation of Longfor Properties Co is currently at 3.02. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.15 | |
β | Beta against NYSE Composite | 0.27 | |
σ | Overall volatility | 4.20 | |
Ir | Information ratio | 0.02 |
Longfor Properties Pink Sheet Return Volatility
Longfor Properties historical daily return volatility represents how much of Longfor Properties pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 4.1969% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Longfor Properties Volatility
Volatility is a rate at which the price of Longfor Properties 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 Longfor Properties may increase or decrease. In other words, similar to Longfor's beta indicator, it measures the risk of Longfor Properties and helps estimate the fluctuations that may happen in a short period of time. So if prices of Longfor Properties 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.Longfor Group Holdings Limited, an investment holding company, engages in property development, investment, and management businesses in the Peoples Republic of China. Longfor Group Holdings Limited was founded in 1993 and is headquartered in Beijing, the Peoples Republic of China. Longfor Properties operates under Real EstateDevelopment classification in the United States and is traded on OTC Exchange. It employs 35048 people.
Longfor Properties' 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 Longfor Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Longfor Properties' price varies over time.
3 ways to utilize Longfor Properties' volatility to invest better
Higher Longfor Properties' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Longfor Properties 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. Longfor Properties 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 Longfor Properties investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Longfor Properties' 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 Longfor Properties' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Longfor Properties Investment Opportunity
Longfor Properties Co has a volatility of 4.2 and is 6.56 times more volatile than NYSE Composite. 37 percent of all equities and portfolios are less risky than Longfor Properties. You can use Longfor Properties Co to enhance the returns of your portfolios. The pink sheet experiences a normal upward fluctuation. Check odds of Longfor Properties to be traded at $12.54 in 90 days.Significant diversification
The correlation between Longfor Properties Co and NYA is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Longfor Properties Co and NYA in the same portfolio, assuming nothing else is changed.
Longfor Properties Additional Risk Indicators
The analysis of Longfor Properties' 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 Longfor Properties' investment and either accepting that risk or mitigating it. Along with some common measures of Longfor Properties pink sheet'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 | 0.0333 | |||
| Market Risk Adjusted Performance | 0.6341 | |||
| Mean Deviation | 3.32 | |||
| Semi Deviation | 4.01 | |||
| Downside Deviation | 4.23 | |||
| Coefficient Of Variation | 2523.4 | |||
| Standard Deviation | 4.54 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Longfor Properties 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 Longfor Properties 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. Longfor Properties' 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, Longfor Properties' 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 Longfor Properties Co.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Longfor Properties Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Complementary Tools for Longfor Pink Sheet analysis
When running Longfor Properties' price analysis, check to measure Longfor Properties' 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 Longfor Properties is operating at the current time. Most of Longfor Properties' value examination focuses on studying past and present price action to predict the probability of Longfor Properties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Longfor Properties' price. Additionally, you may evaluate how the addition of Longfor Properties to your portfolios can decrease your overall portfolio volatility.
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