ARCELORMITTAL LUXEMB retains Efficiency (Sharpe Ratio) of -0.0759, which signifies that the bond had -0.0759% of return per unit of risk over the last 3 months. Our philosophy in foreseeing the risk of any bond is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. ARCELORMITTAL exposes fifteen different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm ARCELORMITTAL LUXEMBOURG 675 variance of 1.58, and Market Risk Adjusted Performance of 0.1742 to double-check the risk estimate we provide.
180 Days Market Risk
Chance of Distress
180 Days Economic Sensitivity
ARCELORMITTAL Bond 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 ARCELORMITTAL daily returns, and it is calculated using variance and standard deviation. We also use ARCELORMITTAL's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ARCELORMITTAL volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ARCELORMITTAL 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 ARCELORMITTAL at lower prices. For example, an investor can purchase ARCELORMITTAL 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 ARCELORMITTAL'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 ARCELORMITTAL Bond
Moving against ARCELORMITTAL Bond
ARCELORMITTAL Market Sensitivity And Downside Risk
ARCELORMITTAL's beta coefficient measures the volatility of ARCELORMITTAL bond 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 ARCELORMITTAL bond's returns against your selected market. In other words, ARCELORMITTAL's beta of -0.17 provides an investor with an approximation of how much risk ARCELORMITTAL bond can potentially add to one of your existing portfolios.ARCELORMITTAL LUXEMBOURG 675 exhibits very low volatility with skewness of -0.31 and kurtosis of 1.11. However, we advise investors to further study ARCELORMITTAL LUXEMBOURG 675 technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ARCELORMITTAL's bond risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ARCELORMITTAL's bond price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall. 3 Months Beta |Analyze ARCELORMITTAL LUXEMB Demand TrendCheck current 90 days ARCELORMITTAL correlation with market (NYSE Composite)
ARCELORMITTAL 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.
It is essential to understand the difference between upside risk (as represented by ARCELORMITTAL's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ARCELORMITTAL's daily returns or price. Since the actual investment returns on holding a position in arcelormittal bond 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 ARCELORMITTAL.
ARCELORMITTAL LUXEMB Bond Volatility Analysis
Volatility refers to the frequency at which ARCELORMITTAL bond price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ARCELORMITTAL's price changes. Investors will then calculate the volatility of ARCELORMITTAL's bond to predict their future moves. A bond that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A bond with relatively stable price changes has low volatility. A highly volatile bond 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 ARCELORMITTAL's volatility:
Historical VolatilityThis type of bond volatility measures ARCELORMITTAL's fluctuations based on previous trends. It's commonly used to predict ARCELORMITTAL's future behavior based on its past. However, it cannot conclusively determine the future direction of the bond.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for ARCELORMITTAL's current market price. This means that the bond will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on ARCELORMITTAL's to be redeemed at a future date.
ARCELORMITTAL Projected Return Density Against MarketAssuming the 90 days trading horizon ARCELORMITTAL LUXEMBOURG 675 has a beta of -0.1664 . This usually implies as returns on benchmark increase, returns on holding ARCELORMITTAL are expected to decrease at a much lower rate. During the bear market, however, ARCELORMITTAL LUXEMBOURG 675 is likely to outperform the market.
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 ARCELORMITTAL or Manufacturing 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 ARCELORMITTAL's price will be affected by overall bond 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 ARCELORMITTAL bond'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. ARCELORMITTAL LUXEMB is significantly underperforming NYSE Composite. ARCELORMITTAL's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how arcelormittal bond'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 an ARCELORMITTAL Price Volatility?Several factors can influence a bond's market volatility:
IndustrySpecific 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 environmentWhen 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 PerformanceSometimes 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.
ARCELORMITTAL Bond 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 ARCELORMITTAL or Manufacturing 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 ARCELORMITTAL's price will be affected by overall bond 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 ARCELORMITTAL bond'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 trading horizon the coefficient of variation of ARCELORMITTAL is -1317.9. The daily returns are distributed with a variance of 1.42 and standard deviation of 1.19. The mean deviation of ARCELORMITTAL LUXEMBOURG 675 is currently at 0.85. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.58
ARCELORMITTAL Bond Return VolatilityARCELORMITTAL historical daily return volatility represents how much of ARCELORMITTAL bond's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. ARCELORMITTAL LUXEMBOURG 675 accepts 1.1896% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.5754% volatility on return distribution over the 90 days horizon.
About ARCELORMITTAL Volatility
Volatility is a rate at which the price of ARCELORMITTAL 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 ARCELORMITTAL may increase or decrease. In other words, similar to ARCELORMITTAL's beta indicator, it measures the risk of ARCELORMITTAL and helps estimate the fluctuations that may happen in a short period of time. So if prices of ARCELORMITTAL 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.
3 ways to utilize ARCELORMITTAL's volatility to invest betterHigher ARCELORMITTAL's bond volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ARCELORMITTAL LUXEMB bond 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. ARCELORMITTAL LUXEMB bond 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 ARCELORMITTAL LUXEMB investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ARCELORMITTAL's bond 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 ARCELORMITTAL's bond relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ARCELORMITTAL Investment OpportunityARCELORMITTAL LUXEMBOURG 675 has a volatility of 1.19 and is 2.05 times more volatile than NYSE Composite. 10 of all equities and portfolios are less risky than ARCELORMITTAL. Compared to the overall equity markets, volatility of historical daily returns of ARCELORMITTAL LUXEMBOURG 675 is lower than 10 () of all global equities and portfolios over the last 90 days. Use ARCELORMITTAL LUXEMBOURG 675 to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The bond experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of ARCELORMITTAL to be traded at 97.02 in 90 days.
ARCELORMITTAL Additional Risk Indicators
The analysis of ARCELORMITTAL'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 ARCELORMITTAL's investment and either accepting that risk or mitigating it. Along with some common measures of ARCELORMITTAL bond'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.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential bonds, we recommend comparing similar bonds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
ARCELORMITTAL 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 ARCELORMITTAL 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. ARCELORMITTAL'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, ARCELORMITTAL'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 ARCELORMITTAL LUXEMBOURG 675.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ARCELORMITTAL LUXEMBOURG 675. Also, note that the market value of any Bond could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the ARCELORMITTAL LUXEMB information on this page should be used as a complementary analysis to other ARCELORMITTAL'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Complementary Tools for ARCELORMITTAL Bond analysis
When running ARCELORMITTAL's price analysis, check to measure ARCELORMITTAL'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 ARCELORMITTAL is operating at the current time. Most of ARCELORMITTAL's value examination focuses on studying past and present price action to predict the probability of ARCELORMITTAL's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ARCELORMITTAL's price. Additionally, you may evaluate how the addition of ARCELORMITTAL to your portfolios can decrease your overall portfolio volatility.