Feng Ching (Taiwan) Volatility
| 2061 Stock | TWD 19.00 0.20 1.06% |
Feng Ching Metal secures Sharpe Ratio (or Efficiency) of -0.16, which denotes the company had a -0.16% return per unit of risk over the last 3 months. Feng Ching Metal exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Feng Ching's Variance of 3.35, mean deviation of 1.45, and Standard Deviation of 1.83 to check the risk estimate we provide. Key indicators related to Feng Ching's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Feng Ching 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 Feng daily returns, and it is calculated using variance and standard deviation. We also use Feng's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Feng Ching volatility.
Feng |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Feng Ching 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 Feng Ching at lower prices. For example, an investor can purchase Feng 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 Feng Ching'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 Feng Stock
| 0.88 | 1605 | Walsin Lihwa Corp | PairCorr |
| 0.84 | 1609 | Ta Ya Electric | PairCorr |
| 0.77 | 1514 | Allis Electric Split | PairCorr |
Moving against Feng Stock
| 0.85 | 2881A | Fubon Financial Holding | PairCorr |
| 0.74 | 2882B | Cathay Financial Holding | PairCorr |
| 0.7 | 4576 | Hiwin Mikrosystem Corp | PairCorr |
| 0.69 | 6781 | Advanced Energy Solution | PairCorr |
| 0.67 | 3211 | Dynapack International | PairCorr |
| 0.67 | 2891 | CTBC Financial Holding | PairCorr |
| 0.66 | 2885 | Yuanta Financial Holdings | PairCorr |
| 0.55 | 0050 | YuantaP shares Taiwan | PairCorr |
| 0.46 | 2330 | Taiwan Semiconductor | PairCorr |
Feng Ching Market Sensitivity And Downside Risk
Feng Ching's beta coefficient measures the volatility of Feng 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 Feng stock's returns against your selected market. In other words, Feng Ching's beta of 0.31 provides an investor with an approximation of how much risk Feng Ching stock can potentially add to one of your existing portfolios. Feng Ching Metal exhibits very low volatility with skewness of -0.44 and kurtosis of 0.29. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Feng Ching'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 Feng Ching'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 Feng Ching Metal Demand TrendCheck current 90 days Feng Ching correlation with market (Dow Jones Industrial)Feng Beta |
Feng 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 | 1.85 |
It is essential to understand the difference between upside risk (as represented by Feng Ching's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Feng Ching's daily returns or price. Since the actual investment returns on holding a position in feng 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 Feng Ching.
Feng Ching Metal Stock Volatility Analysis
Volatility refers to the frequency at which Feng Ching stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Feng Ching's price changes. Investors will then calculate the volatility of Feng Ching'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 Feng Ching's volatility:
Historical Volatility
This type of stock volatility measures Feng Ching's fluctuations based on previous trends. It's commonly used to predict Feng Ching'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 Feng Ching'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 Feng Ching'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. Feng Ching Metal 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.
Feng Ching Projected Return Density Against Market
Assuming the 90 days trading horizon Feng Ching has a beta of 0.311 . This suggests as returns on the market go up, Feng Ching average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Feng Ching Metal 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 Feng Ching or Industrials 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 Feng Ching'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 Feng 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.
Feng Ching Metal has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Feng Ching 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.Feng Ching Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Feng Ching is -617.97. The daily returns are distributed with a variance of 3.43 and standard deviation of 1.85. The mean deviation of Feng Ching Metal is currently at 1.45. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.42 | |
β | Beta against Dow Jones | 0.31 | |
σ | Overall volatility | 1.85 | |
Ir | Information ratio | -0.28 |
Feng Ching Stock Return Volatility
Feng Ching historical daily return volatility represents how much of Feng Ching stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 1.8507% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Feng Ching Volatility
Volatility is a rate at which the price of Feng Ching 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 Feng Ching may increase or decrease. In other words, similar to Feng's beta indicator, it measures the risk of Feng Ching and helps estimate the fluctuations that may happen in a short period of time. So if prices of Feng Ching 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.Feng Ching Metal Corporation produces and sells copper wires and enameled copper wires primarily for use in electronic, electrical appliance, and communication technology industries in Taiwan and internationally. The company was founded in 1983 and is based in Kaohsiung, Taiwan. FENG CHING operates under Electrical Equipment Parts classification in Taiwan and is traded on Taiwan OTC Exchange.
Feng Ching'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 Feng Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Feng Ching's price varies over time.
3 ways to utilize Feng Ching's volatility to invest better
Higher Feng Ching's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Feng Ching Metal 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. Feng Ching Metal 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 Feng Ching Metal investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Feng Ching'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 Feng Ching's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Feng Ching Investment Opportunity
Feng Ching Metal has a volatility of 1.85 and is 2.5 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Feng Ching Metal is lower than 16 percent of all global equities and portfolios over the last 90 days. You can use Feng Ching Metal to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Feng Ching to be traded at NT$20.9 in 90 days.Average diversification
The correlation between Feng Ching Metal and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Feng Ching Metal and DJI in the same portfolio, assuming nothing else is changed.
Feng Ching Additional Risk Indicators
The analysis of Feng Ching'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 Feng Ching's investment and either accepting that risk or mitigating it. Along with some common measures of Feng Ching 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 | (0.15) | |||
| Market Risk Adjusted Performance | (1.21) | |||
| Mean Deviation | 1.45 | |||
| Coefficient Of Variation | (493.52) | |||
| Standard Deviation | 1.83 | |||
| Variance | 3.35 | |||
| Information Ratio | (0.28) |
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.
Feng Ching 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 Feng Ching 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. Feng Ching'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, Feng Ching'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 Feng Ching Metal.
Additional Tools for Feng Stock Analysis
When running Feng Ching's price analysis, check to measure Feng Ching'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 Feng Ching is operating at the current time. Most of Feng Ching's value examination focuses on studying past and present price action to predict the probability of Feng Ching's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Feng Ching's price. Additionally, you may evaluate how the addition of Feng Ching to your portfolios can decrease your overall portfolio volatility.