Cafe24 Corp (Korea) Volatility
| 042000 Stock | KRW 37,500 900.00 2.46% |
Cafe24 Corp appears to be very steady, given 3 months investment horizon. Cafe24 Corp secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had a 0.1% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Cafe24 Corp, which you can use to evaluate the volatility of the firm. Please makes use of Cafe24 Corp's risk adjusted performance of 0.0922, and Mean Deviation of 3.16 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Cafe24 Corp's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Cafe24 Corp 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 Cafe24 daily returns, and it is calculated using variance and standard deviation. We also use Cafe24's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cafe24 Corp volatility.
Cafe24 |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cafe24 Corp 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 Cafe24 Corp at lower prices to lower their average cost per share. Similarly, when the prices of Cafe24 Corp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Cafe24 Stock
| 0.56 | 106240 | Finetechnix CoLtd | PairCorr |
| 0.55 | 293780 | AptaBio Therapeutics | PairCorr |
| 0.52 | 234340 | Settlebank | PairCorr |
| 0.31 | 187870 | DeviceENGCOLtd | PairCorr |
Cafe24 Corp Market Sensitivity And Downside Risk
Cafe24 Corp's beta coefficient measures the volatility of Cafe24 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 Cafe24 stock's returns against your selected market. In other words, Cafe24 Corp's beta of 0.31 provides an investor with an approximation of how much risk Cafe24 Corp stock can potentially add to one of your existing portfolios. Cafe24 Corp shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cafe24 Corp'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 Cafe24 Corp'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 Cafe24 Corp Demand TrendCheck current 90 days Cafe24 Corp correlation with market (Dow Jones Industrial)Cafe24 Beta |
Cafe24 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 | 4.31 |
It is essential to understand the difference between upside risk (as represented by Cafe24 Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cafe24 Corp's daily returns or price. Since the actual investment returns on holding a position in cafe24 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 Cafe24 Corp.
Cafe24 Corp Stock Volatility Analysis
Volatility refers to the frequency at which Cafe24 Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cafe24 Corp's price changes. Investors will then calculate the volatility of Cafe24 Corp'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 Cafe24 Corp's volatility:
Historical Volatility
This type of stock volatility measures Cafe24 Corp's fluctuations based on previous trends. It's commonly used to predict Cafe24 Corp'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 Cafe24 Corp'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 Cafe24 Corp'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. Cafe24 Corp 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.
Cafe24 Corp Projected Return Density Against Market
Assuming the 90 days trading horizon Cafe24 Corp has a beta of 0.3123 . This suggests as returns on the market go up, Cafe24 Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cafe24 Corp 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 Cafe24 Corp or Information Technology 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 Cafe24 Corp'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 Cafe24 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.
Cafe24 Corp has an alpha of 0.4749, implying that it can generate a 0.47 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Cafe24 Corp 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.Cafe24 Corp Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Cafe24 Corp is 958.07. The daily returns are distributed with a variance of 18.57 and standard deviation of 4.31. The mean deviation of Cafe24 Corp is currently at 3.01. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.47 | |
β | Beta against Dow Jones | 0.31 | |
σ | Overall volatility | 4.31 | |
Ir | Information ratio | 0.09 |
Cafe24 Corp Stock Return Volatility
Cafe24 Corp historical daily return volatility represents how much of Cafe24 Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 4.3098% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Cafe24 Corp Volatility
Volatility is a rate at which the price of Cafe24 Corp 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 Cafe24 Corp may increase or decrease. In other words, similar to Cafe24's beta indicator, it measures the risk of Cafe24 Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cafe24 Corp 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.The companys e-commerce platform, cafe24, which offers various services, including shopping mall solution, advertising, marketing, and hosting infrastructure. Cafe24 Corp. was founded in 1999 and is based in Seoul, South Korea. Cafe24 Corp is traded on Korean Securities Dealers Automated Quotations in South Korea.
Cafe24 Corp'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 Cafe24 Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cafe24 Corp's price varies over time.
3 ways to utilize Cafe24 Corp's volatility to invest better
Higher Cafe24 Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cafe24 Corp 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. Cafe24 Corp 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 Cafe24 Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cafe24 Corp'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 Cafe24 Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Cafe24 Corp Investment Opportunity
Cafe24 Corp has a volatility of 4.31 and is 5.9 times more volatile than Dow Jones Industrial. 38 percent of all equities and portfolios are less risky than Cafe24 Corp. You can use Cafe24 Corp to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Cafe24 Corp to be traded at W45000.0 in 90 days.Significant diversification
The correlation between Cafe24 Corp and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cafe24 Corp and DJI in the same portfolio, assuming nothing else is changed.
Cafe24 Corp Additional Risk Indicators
The analysis of Cafe24 Corp'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 Cafe24 Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Cafe24 Corp 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 | 0.0922 | |||
| Market Risk Adjusted Performance | 1.62 | |||
| Mean Deviation | 3.16 | |||
| Semi Deviation | 3.13 | |||
| Downside Deviation | 3.47 | |||
| Coefficient Of Variation | 865.39 | |||
| Standard Deviation | 4.44 |
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.
Cafe24 Corp 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 Cafe24 Corp 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. Cafe24 Corp'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, Cafe24 Corp'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 Cafe24 Corp.
Complementary Tools for Cafe24 Stock analysis
When running Cafe24 Corp's price analysis, check to measure Cafe24 Corp'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 Cafe24 Corp is operating at the current time. Most of Cafe24 Corp's value examination focuses on studying past and present price action to predict the probability of Cafe24 Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cafe24 Corp's price. Additionally, you may evaluate how the addition of Cafe24 Corp to your portfolios can decrease your overall portfolio volatility.
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