Trxade Group Stock Volatility
| MEDS Stock | USD 6.45 0.05 0.77% |
Trxade is dangerous given 3 months investment horizon. Trxade Group owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.16, which indicates the firm had a 0.16% return per unit of risk over the last 3 months. We were able to break down twenty-nine different technical indicators, which can help you to evaluate if expected returns of 3.42% are justified by taking the suggested risk. Use Trxade Group Semi Deviation of 9.38, risk adjusted performance of 0.1083, and Coefficient Of Variation of 632.23 to evaluate company specific risk that cannot be diversified away. Key indicators related to Trxade's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Trxade 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 Trxade daily returns, and it is calculated using variance and standard deviation. We also use Trxade's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Trxade volatility.
Trxade |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Trxade 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 Trxade at lower prices. For example, an investor can purchase Trxade 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 Trxade'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 together with Trxade Stock
| 0.78 | BJ | BJs Wholesale Club Financial Report 28th of May 2024 | PairCorr |
| 0.84 | DG | Dollar General Financial Report 6th of June 2024 | PairCorr |
| 0.69 | GO | Grocery Outlet Holding Financial Report 14th of May 2024 | PairCorr |
| 0.85 | KR | Kroger Company Financial Report 20th of June 2024 | PairCorr |
Moving against Trxade Stock
| 0.66 | HFFG | Hf Foods Group | PairCorr |
| 0.63 | IMKTA | Ingles Markets rporated Earnings Call Next Week | PairCorr |
| 0.6 | LFLY | Leafly Holdings Financial Report 9th of May 2024 | PairCorr |
| 0.43 | WBUY | WEBUY GLOBAL LTD | PairCorr |
Trxade Market Sensitivity And Downside Risk
Trxade's beta coefficient measures the volatility of Trxade stock 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 Trxade stock's returns against your selected market. In other words, Trxade's beta of 2.41 provides an investor with an approximation of how much risk Trxade stock can potentially add to one of your existing portfolios. Trxade Group is showing large volatility of returns over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Trxade'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 Trxade'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 financial instruments as prices fall.
3 Months Beta |Analyze Trxade Group Demand TrendCheck current 90 days Trxade correlation with market (NYSE Composite)Trxade Beta |
Trxade 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 | 21.43 |
It is essential to understand the difference between upside risk (as represented by Trxade's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Trxade's daily returns or price. Since the actual investment returns on holding a position in trxade 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 Trxade.
Trxade Group Stock Volatility Analysis
Volatility refers to the frequency at which Trxade stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Trxade's price changes. Investors will then calculate the volatility of Trxade'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 Trxade's volatility:
Historical Volatility
This type of stock volatility measures Trxade's fluctuations based on previous trends. It's commonly used to predict Trxade'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 Trxade'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 Trxade'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. Trxade Group 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.
Trxade Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 2.4139 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Trxade will likely underperform.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 Trxade or Consumer Staples Distribution & Retail 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 Trxade'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 Trxade 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.
Trxade Group has an alpha of 3.0984, implying that it can generate a 3.1 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Trxade 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.Trxade Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Trxade is 626.81. The daily returns are distributed with a variance of 459.35 and standard deviation of 21.43. The mean deviation of Trxade Group is currently at 10.96. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 3.10 | |
β | Beta against NYSE Composite | 2.41 | |
σ | Overall volatility | 21.43 | |
Ir | Information ratio | 0.15 |
Trxade Stock Return Volatility
Trxade historical daily return volatility represents how much of Trxade stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 21.4325% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.633% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Trxade Volatility
Volatility is a rate at which the price of Trxade 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 Trxade may increase or decrease. In other words, similar to Trxade's beta indicator, it measures the risk of Trxade and helps estimate the fluctuations that may happen in a short period of time. So if prices of Trxade 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 132.9 K | 234 K | |
| Market Cap | 4 M | 3.8 M |
Trxade'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 Trxade Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Trxade's price varies over time.
3 ways to utilize Trxade's volatility to invest better
Higher Trxade's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Trxade Group 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. Trxade Group 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 Trxade Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Trxade'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 Trxade's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Trxade Investment Opportunity
Trxade Group has a volatility of 21.43 and is 34.02 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Trxade Group is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Trxade Group to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Trxade to be traded at $6.32 in 90 days.Significant diversification
The correlation between Trxade Group and NYA is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Trxade Group and NYA in the same portfolio, assuming nothing else is changed.
Trxade Additional Risk Indicators
The analysis of Trxade'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 Trxade's investment and either accepting that risk or mitigating it. Along with some common measures of Trxade 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 | 0.1083 | |||
| Market Risk Adjusted Performance | 1.38 | |||
| Mean Deviation | 10.6 | |||
| Semi Deviation | 9.38 | |||
| Downside Deviation | 11.05 | |||
| Coefficient Of Variation | 632.23 | |||
| Standard Deviation | 20.95 |
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.
Trxade 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 Trxade 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. Trxade'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, Trxade'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 Trxade Group.
When determining whether Trxade Group is a strong investment it is important to analyze Trxade's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Trxade's future performance. For an informed investment choice regarding Trxade Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Trxade Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. Note that the Trxade Group information on this page should be used as a complementary analysis to other Trxade'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 the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Trxade Stock analysis
When running Trxade's price analysis, check to measure Trxade'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 Trxade is operating at the current time. Most of Trxade's value examination focuses on studying past and present price action to predict the probability of Trxade's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Trxade's price. Additionally, you may evaluate how the addition of Trxade to your portfolios can decrease your overall portfolio volatility.
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Is Trxade'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 Trxade. If investors know Trxade 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 Trxade 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 2.766 | Earnings Share (17.96) | Revenue Per Share 10.827 | Quarterly Revenue Growth 0.043 | Return On Assets (0.56) |
The market value of Trxade Group is measured differently than its book value, which is the value of Trxade that is recorded on the company's balance sheet. Investors also form their own opinion of Trxade's value that differs from its market value or its book value, called intrinsic value, which is Trxade'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 Trxade's market value can be influenced by many factors that don't directly affect Trxade'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 Trxade's value and its price as these two are different measures arrived at by different means. Investors typically determine if Trxade is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Trxade'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.