# Teva Pharmaceutical Industries Stock Volatility

TEVJF Stock | USD 17.70 2.70 18.00% |

Teva Pharmaceutical appears to be out of control, given 3 months investment horizon. Teva Pharmaceutical owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0952, which indicates the firm had a 0.0952% return per unit of risk over the last 3 months. By inspecting Teva Pharmaceutical's technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please review Teva Pharmaceutical's Coefficient Of Variation of 1092.55, risk adjusted performance of 0.0803, and Semi Deviation of 3.39 to confirm if our risk estimates are consistent with your expectations.

**Key indicators related to Teva Pharmaceutical's volatility include:**60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |

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

Teva |

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Teva Pharmaceutical can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Teva Pharmaceutical at lower prices to lower their average cost per share. Similarly, when the prices of Teva Pharmaceutical's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

## Teva Pharmaceutical Market Sensitivity And Downside Risk

Teva Pharmaceutical's beta coefficient measures the volatility of Teva 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 Teva pink sheet's returns against your selected market. In other words, Teva Pharmaceutical's beta of 0.0513 provides an investor with an approximation of how much risk Teva Pharmaceutical pink sheet can potentially add to one of your existing portfolios. Teva Pharmaceutical Industries 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 Teva Pharmaceutical's 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 Teva Pharmaceutical's 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 Teva Pharmaceutical Demand TrendCheck current 90 days Teva Pharmaceutical correlation with market (Dow Jones Industrial)## Teva Beta |

Teva 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 | 5.98 |

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

## Teva Pharmaceutical Pink Sheet Volatility Analysis

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

### Historical Volatility

This type of pink sheet volatility measures Teva Pharmaceutical's fluctuations based on previous trends. It's commonly used to predict Teva Pharmaceutical's 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 Teva Pharmaceutical's 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 Teva Pharmaceutical'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. Teva Pharmaceutical 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.

## Teva Pharmaceutical Projected Return Density Against Market

Assuming the 90 days horizon Teva Pharmaceutical has a beta of 0.0513 . This usually implies as returns on the market go up, Teva Pharmaceutical average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Teva Pharmaceutical Industries 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 Teva Pharmaceutical or Healthcare 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 Teva Pharmaceutical's 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 Teva 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.

Teva Pharmaceutical Industries has an alpha of 0.5157, implying that it can generate a 0.52 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a Teva Pharmaceutical 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.## Teva Pharmaceutical Pink Sheet Risk Measures

Assuming the 90 days horizon the coefficient of variation of Teva Pharmaceutical is 1050.65. The daily returns are distributed with a variance of 35.76 and standard deviation of 5.98. The mean deviation of Teva Pharmaceutical Industries is currently at 2.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.78

α | Alpha over Dow Jones | 0.52 | |

β | Beta against Dow Jones | 0.05 | |

σ | Overall volatility | 5.98 | |

Ir | Information ratio | 0.09 |

## Teva Pharmaceutical Pink Sheet Return Volatility

Teva Pharmaceutical historical daily return volatility represents how much of Teva Pharmaceutical pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 5.9799% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7977% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About Teva Pharmaceutical Volatility

Volatility is a rate at which the price of Teva Pharmaceutical 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 Teva Pharmaceutical may increase or decrease. In other words, similar to Teva's beta indicator, it measures the risk of Teva Pharmaceutical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Teva Pharmaceutical 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.Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel. TEVA PHARMACEUTICAL is traded on OTC Exchange in the United States.

Teva Pharmaceutical'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 Teva Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Teva Pharmaceutical's price varies over time.

## 3 ways to utilize Teva Pharmaceutical's volatility to invest better

Higher Teva Pharmaceutical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Teva Pharmaceutical 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. Teva Pharmaceutical 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 Teva Pharmaceutical investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Teva Pharmaceutical'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 Teva Pharmaceutical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## Teva Pharmaceutical Investment Opportunity

Teva Pharmaceutical Industries has a volatility of 5.98 and is 7.48 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Teva Pharmaceutical Industries is higher than**53 percent**of all global equities and portfolios over the last 90 days. You can use Teva Pharmaceutical Industries to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Teva Pharmaceutical to be traded at $22.13 in 90 days.

### Significant diversification

The correlation between Teva Pharmaceutical Industries and DJI is

**0.01**(i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Teva Pharmaceutical Industries and DJI in the same portfolio, assuming nothing else is changed.## Teva Pharmaceutical Additional Risk Indicators

The analysis of Teva Pharmaceutical'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 Teva Pharmaceutical's investment and either accepting that risk or mitigating it. Along with some common measures of Teva Pharmaceutical 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 | 0.0803 | |||

Market Risk Adjusted Performance | 10.07 | |||

Mean Deviation | 2.58 | |||

Semi Deviation | 3.39 | |||

Downside Deviation | 11.6 | |||

Coefficient Of Variation | 1092.55 | |||

Standard Deviation | 5.75 |

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.

## Teva Pharmaceutical 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 Teva Pharmaceutical 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. Teva Pharmaceutical'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, Teva Pharmaceutical'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 Teva Pharmaceutical Industries.

## Complementary Tools for Teva Pink Sheet analysis

When running Teva Pharmaceutical's price analysis, check to measure Teva Pharmaceutical'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 Teva Pharmaceutical is operating at the current time. Most of Teva Pharmaceutical's value examination focuses on studying past and present price action to predict the probability of Teva Pharmaceutical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Teva Pharmaceutical's price. Additionally, you may evaluate how the addition of Teva Pharmaceutical to your portfolios can decrease your overall portfolio volatility.

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