Tencent OTC Stock Volatility

TCTZF -  USA Stock  

USD 56.64  3.15  5.27%

Tencent Holdings owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.11, which indicates the firm had -0.11% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring 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. Tencent Holdings exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Tencent Holdings coefficient of variation of (1,424), and Risk Adjusted Performance of (0.05) to confirm the risk estimate we provide.

Tencent Volatility 

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

30 Days Market Risk

Very steady

Chance of Distress

Below Average

30 Days Economic Sensitivity

Slowly supersedes the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Tencent Holdings 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 Tencent Holdings at lower prices. For example, an investor can purchase Tencent 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 Tencent Holdings' 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.

Tencent Holdings Market Sensitivity And Downside Risk

Tencent Holdings' beta coefficient measures the volatility of Tencent otc 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 Tencent otc stock's returns against your selected market. In other words, Tencent Holdings's beta of 0.27 provides an investor with an approximation of how much risk Tencent Holdings otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Tencent's beta means in this case. As returns on the market increase, Tencent Holdings returns are expected to increase less than the market. However, during the bear market, the loss on holding Tencent Holdings will be expected to be smaller as well.
3 Months Beta |Analyze Tencent Holdings Demand Trend
Check current 90 days Tencent Holdings correlation with market (DOW)

Tencent Beta

    
  0.27  
Tencent 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

    
  2.31  
It is essential to understand the difference between upside risk (as represented by Tencent Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Tencent Holdings stock's daily returns or price. Since the actual investment returns on holding a position in Tencent Holdings 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 Tencent Holdings.

Tencent Holdings OTC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Tencent Holdings' fluctuations based on previous trends. It's commonly used to predict Tencent Holdings' 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 Tencent Holdings' 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. Tencent Holdings 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. View also all equity analysis or get more info about average price price transform indicator.

Tencent Holdings Projected Return Density Against Market

Assuming the 90 days horizon Tencent Holdings has a beta of 0.2706 . This usually implies as returns on the market go up, Tencent Holdings average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Tencent Holdings 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 Tencent Holdings or Communication Services 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 Tencent Holdings 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 Tencent 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. Tencent Holdings is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Tencent Holdings' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Tencent Holdings 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.

Tencent Holdings OTC 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 Tencent Holdings or Communication Services 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 Tencent Holdings 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 Tencent 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 horizon the coefficient of variation of Tencent Holdings is -948.1. The daily returns are distributed with a variance of 5.35 and standard deviation of 2.31. The mean deviation of Tencent Holdings is currently at 1.78. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
-0.17
β
Beta against DOW0.27
σ
Overall volatility
2.31
Ir
Information ratio -0.06

Tencent Holdings OTC Stock Return Volatility

Tencent Holdings historical daily return volatility represents how much Tencent Holdings stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm shows 2.3133% volatility of returns over 90 . By contrast, DOW inherits 0.8317% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Tencent Holdings Volatility

Volatility is a rate at which the price of Tencent Holdings 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 Tencent Holdings may increase or decrease. In other words, similar to Tencent's beta indicator, it measures the risk of Tencent Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tencent Holdings 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.
Tencent Holdings Limited, an investment holding company, provides value-added services and Online advertising services in Mainland China and internationally. Tencent Holdings Limited company was founded in 1998 and is headquartered in Shenzhen, the Peoples Republic of China. Tencent Holdings operates under Internet Content Information classification in the United States and is traded on OTC Exchange. It employs 89228 people.

Tencent Holdings Investment Opportunity

Tencent Holdings has a volatility of 2.31 and is 2.78 times more volatile than DOW. 19  of all equities and portfolios are less risky than Tencent Holdings. Compared to the overall equity markets, volatility of historical daily returns of Tencent Holdings is lower than 19 () of all global equities and portfolios over the last 90 days. Use Tencent Holdings to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Tencent Holdings to be traded at $53.81 in 90 days. . Let's try to break down what Tencent's beta means in this case. As returns on the market increase, Tencent Holdings returns are expected to increase less than the market. However, during the bear market, the loss on holding Tencent Holdings will be expected to be smaller as well.

Significant diversification

The correlation between Tencent Holdings and DJI is Significant diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Tencent Holdings and DJI in the same portfolio assuming nothing else is changed.

Tencent Holdings Additional Risk Indicators

The analysis of Tencent Holdings' 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 Tencent Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of Tencent Holdings 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(0.05)
Market Risk Adjusted Performance(0.66)
Mean Deviation1.85
Coefficient Of Variation(1,424)
Standard Deviation2.44
Variance5.94
Information Ratio(0.06)
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.

Tencent Holdings 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 Tencent Holdings 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. Tencent Holdings' 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, Tencent Holdings' 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 Tencent Holdings.
Additionally, take a look at World Market Map. Note that the Tencent Holdings information on this page should be used as a complementary analysis to other Tencent Holdings' 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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