Visual Photonics (Taiwan) Volatility
| 2455 Stock | TWD 173.50 3.50 2.06% |
Visual Photonics appears to be very steady, given 3 months investment horizon. Visual Photonics Epitaxy owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0941, which indicates the firm had a 0.0941% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Visual Photonics Epitaxy, which you can use to evaluate the volatility of the company. Please review Visual Photonics' Semi Deviation of 2.75, risk adjusted performance of 0.0991, and Coefficient Of Variation of 837.53 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Visual Photonics' volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Visual Photonics 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 Visual daily returns, and it is calculated using variance and standard deviation. We also use Visual's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Visual Photonics volatility.
Visual |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Visual Photonics 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 Visual Photonics at lower prices. For example, an investor can purchase Visual 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 Visual Photonics' 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.
Visual Photonics Market Sensitivity And Downside Risk
Visual Photonics' beta coefficient measures the volatility of Visual 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 Visual stock's returns against your selected market. In other words, Visual Photonics's beta of 0.68 provides an investor with an approximation of how much risk Visual Photonics stock can potentially add to one of your existing portfolios. Visual Photonics Epitaxy 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 Visual Photonics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Visual Photonics' 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 Visual Photonics Epitaxy Demand TrendCheck current 90 days Visual Photonics correlation with market (Dow Jones Industrial)Visual Beta |
Visual 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 | 3.49 |
It is essential to understand the difference between upside risk (as represented by Visual Photonics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Visual Photonics' daily returns or price. Since the actual investment returns on holding a position in visual 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 Visual Photonics.
Visual Photonics Epitaxy Stock Volatility Analysis
Volatility refers to the frequency at which Visual Photonics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Visual Photonics' price changes. Investors will then calculate the volatility of Visual Photonics' 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 Visual Photonics' volatility:
Historical Volatility
This type of stock volatility measures Visual Photonics' fluctuations based on previous trends. It's commonly used to predict Visual Photonics' 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 Visual Photonics' 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 Visual Photonics' 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. Visual Photonics Epitaxy 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.
Visual Photonics Projected Return Density Against Market
Assuming the 90 days trading horizon Visual Photonics has a beta of 0.6806 . This suggests as returns on the market go up, Visual Photonics average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Visual Photonics Epitaxy 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 Visual Photonics or Semiconductors & Semiconductor Equipment 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 Visual Photonics' 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 Visual 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.
Visual Photonics Epitaxy has an alpha of 0.3253, implying that it can generate a 0.33 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Visual Photonics 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.Visual Photonics Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Visual Photonics is 1062.26. The daily returns are distributed with a variance of 12.15 and standard deviation of 3.49. The mean deviation of Visual Photonics Epitaxy is currently at 2.71. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.33 | |
β | Beta against Dow Jones | 0.68 | |
σ | Overall volatility | 3.49 | |
Ir | Information ratio | 0.08 |
Visual Photonics Stock Return Volatility
Visual Photonics historical daily return volatility represents how much of Visual Photonics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 3.4853% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7462% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Visual Photonics Volatility
Volatility is a rate at which the price of Visual Photonics 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 Visual Photonics may increase or decrease. In other words, similar to Visual's beta indicator, it measures the risk of Visual Photonics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Visual Photonics 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.Visual Photonics Epitaxy Co., Ltd. provides solutions for wireless communications, optical fiber communications, and solar cell applications in Taiwan. Visual Photonics Epitaxy Co., Ltd. was founded in 1996 and is based in Taoyuan City, Taiwan. VISUAL PHOTONICS operates under Semiconductor Equipment Materials classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 248 people.
Visual Photonics' 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 Visual Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Visual Photonics' price varies over time.
3 ways to utilize Visual Photonics' volatility to invest better
Higher Visual Photonics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Visual Photonics Epitaxy 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. Visual Photonics Epitaxy 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 Visual Photonics Epitaxy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Visual Photonics' 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 Visual Photonics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Visual Photonics Investment Opportunity
Visual Photonics Epitaxy has a volatility of 3.49 and is 4.65 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Visual Photonics Epitaxy is lower than 31 percent of all global equities and portfolios over the last 90 days. You can use Visual Photonics Epitaxy to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Visual Photonics to be traded at NT$208.2 in 90 days.Average diversification
The correlation between Visual Photonics Epitaxy and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Visual Photonics Epitaxy and DJI in the same portfolio, assuming nothing else is changed.
Visual Photonics Additional Risk Indicators
The analysis of Visual Photonics' 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 Visual Photonics' investment and either accepting that risk or mitigating it. Along with some common measures of Visual Photonics 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 | 0.0991 | |||
| Market Risk Adjusted Performance | 0.6156 | |||
| Mean Deviation | 2.78 | |||
| Semi Deviation | 2.75 | |||
| Downside Deviation | 3.25 | |||
| Coefficient Of Variation | 837.53 | |||
| Standard Deviation | 3.54 |
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.
Visual Photonics 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 Visual Photonics 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. Visual Photonics' 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, Visual Photonics' 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 Visual Photonics Epitaxy.
Additional Tools for Visual Stock Analysis
When running Visual Photonics' price analysis, check to measure Visual Photonics' 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 Visual Photonics is operating at the current time. Most of Visual Photonics' value examination focuses on studying past and present price action to predict the probability of Visual Photonics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Visual Photonics' price. Additionally, you may evaluate how the addition of Visual Photonics to your portfolios can decrease your overall portfolio volatility.