360 Finance Stock Volatility
| QFIN Stock | USD 18.73 0.22 1.19% |
360 Finance appears to be not too volatile, given 3 months investment horizon. 360 Finance retains Efficiency (Sharpe Ratio) of 0.16, which signifies that the company had a 0.16% return per unit of price deviation over the last 3 months. We have found twenty-nine technical indicators for 360 Finance, which you can use to evaluate the volatility of the entity. Please makes use of 360 Finance's Market Risk Adjusted Performance of 0.4309, standard deviation of 3.11, and Coefficient Of Variation of 667.45 to double-check if our risk estimates are consistent with your expectations. Key indicators related to 360 Finance's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
360 Finance 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 360 daily returns, and it is calculated using variance and standard deviation. We also use 360's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 360 Finance volatility.
360 |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 360 Finance 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 360 Finance at lower prices. For example, an investor can purchase 360 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 360 Finance'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 360 Stock
| 0.67 | CG | Carlyle Group Earnings Call This Week | PairCorr |
| 0.87 | AMG | Affiliated Managers Earnings Call This Week | PairCorr |
Moving against 360 Stock
| 0.8 | AJX | Great Ajax Corp Earnings Call This Week | PairCorr |
| 0.48 | EFC | Ellington Financial LLC Financial Report 13th of May 2024 | PairCorr |
360 Finance Market Sensitivity And Downside Risk
360 Finance's beta coefficient measures the volatility of 360 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 360 stock's returns against your selected market. In other words, 360 Finance's beta of 1.08 provides an investor with an approximation of how much risk 360 Finance stock can potentially add to one of your existing portfolios. 360 Finance currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.36. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 360 Finance'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 360 Finance'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 360 Finance Demand TrendCheck current 90 days 360 Finance correlation with market (NYSE Composite)360 Beta |
360 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 | 3.05 |
It is essential to understand the difference between upside risk (as represented by 360 Finance's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of 360 Finance's daily returns or price. Since the actual investment returns on holding a position in 360 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 360 Finance.
Using 360 Put Option to Manage Risk
Put options written on 360 Finance grant holders of the option the right to sell a specified amount of 360 Finance at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of 360 Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge 360 Finance's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding 360 Finance will be realized, the loss incurred will be offset by the profits made with the option trade.
360 Finance's PUT expiring on 2024-05-17
Profit |
| 360 Finance Price At Expiration |
Current 360 Finance Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $20.0 | -0.6963 | 0.1364 | 17 | 2024-05-17 | 1.7 - 2.3 | 2.21 | View |
Put | 2024-05-17 PUT at $17.5 | -0.3001 | 0.1655 | 479 | 2024-05-17 | 0.35 - 0.5 | 0.61 | View |
360 Finance Stock Volatility Analysis
Volatility refers to the frequency at which 360 Finance stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 360 Finance's price changes. Investors will then calculate the volatility of 360 Finance'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 360 Finance's volatility:
Historical Volatility
This type of stock volatility measures 360 Finance's fluctuations based on previous trends. It's commonly used to predict 360 Finance'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 360 Finance'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 360 Finance'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. 360 Finance 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.
360 Finance Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.083 indicating 360 Finance market returns are highly reactive to returns on the market. As the market goes up or down, 360 Finance is expected to follow.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 360 Finance or Consumer Finance 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 360 Finance'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 360 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.
360 Finance has an alpha of 0.3635, implying that it can generate a 0.36 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a 360 Finance 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.360 Finance Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of 360 Finance is 624.49. The daily returns are distributed with a variance of 9.31 and standard deviation of 3.05. The mean deviation of 360 Finance is currently at 2.1. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.36 | |
β | Beta against NYSE Composite | 1.08 | |
σ | Overall volatility | 3.05 | |
Ir | Information ratio | 0.12 |
360 Finance Stock Return Volatility
360 Finance historical daily return volatility represents how much of 360 Finance stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.0507% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About 360 Finance Volatility
Volatility is a rate at which the price of 360 Finance 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 360 Finance may increase or decrease. In other words, similar to 360's beta indicator, it measures the risk of 360 Finance and helps estimate the fluctuations that may happen in a short period of time. So if prices of 360 Finance 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 | 1.9 B | 1.9 B | |
| Market Cap | 18.4 B | 12.1 B |
360 Finance'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 360 Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much 360 Finance's price varies over time.
3 ways to utilize 360 Finance's volatility to invest better
Higher 360 Finance's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of 360 Finance 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. 360 Finance 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 360 Finance investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in 360 Finance'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 360 Finance's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
360 Finance Investment Opportunity
360 Finance has a volatility of 3.05 and is 4.77 times more volatile than NYSE Composite. 27 percent of all equities and portfolios are less risky than 360 Finance. You can use 360 Finance to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of 360 Finance to be traded at $20.6 in 90 days.Modest diversification
The correlation between 360 Finance and NYA is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and NYA in the same portfolio, assuming nothing else is changed.
360 Finance Additional Risk Indicators
The analysis of 360 Finance'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 360 Finance's investment and either accepting that risk or mitigating it. Along with some common measures of 360 Finance 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 | 0.1014 | |||
| Market Risk Adjusted Performance | 0.4309 | |||
| Mean Deviation | 2.21 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.37 | |||
| Coefficient Of Variation | 667.45 | |||
| Standard Deviation | 3.11 |
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.
360 Finance 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 360 Finance 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. 360 Finance'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, 360 Finance'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 360 Finance.
When determining whether 360 Finance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of 360 Finance's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of 360 Finance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on 360 Finance Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in 360 Finance. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in 360 Stock, please use our How to Invest in 360 Finance guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Complementary Tools for 360 Stock analysis
When running 360 Finance's price analysis, check to measure 360 Finance'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 360 Finance is operating at the current time. Most of 360 Finance's value examination focuses on studying past and present price action to predict the probability of 360 Finance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 360 Finance's price. Additionally, you may evaluate how the addition of 360 Finance to your portfolios can decrease your overall portfolio volatility.
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Is 360 Finance'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 360 Finance. If investors know 360 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 360 Finance 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 0.275 | Dividend Share 7.658 | Earnings Share 3.4 | Revenue Per Share 101.575 | Quarterly Revenue Growth 0.151 |
The market value of 360 Finance is measured differently than its book value, which is the value of 360 that is recorded on the company's balance sheet. Investors also form their own opinion of 360 Finance's value that differs from its market value or its book value, called intrinsic value, which is 360 Finance'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 360 Finance's market value can be influenced by many factors that don't directly affect 360 Finance'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 360 Finance's value and its price as these two are different measures arrived at by different means. Investors typically determine if 360 Finance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 360 Finance'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.