Poste Italiane (Germany) Volatility
| 7PI Stock | EUR 13.74 0.23 1.70% |
At this point, Poste Italiane is very steady. Poste Italiane SpA maintains Sharpe Ratio (i.e., Efficiency) of 0.19, which implies the firm had a 0.19% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Poste Italiane SpA, which you can use to evaluate the volatility of the company. Please check Poste Italiane's Semi Deviation of 0.7787, coefficient of variation of 561.54, and Risk Adjusted Performance of 0.1313 to confirm if the risk estimate we provide is consistent with the expected return of 0.19%. Key indicators related to Poste Italiane's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Poste Italiane 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 Poste daily returns, and it is calculated using variance and standard deviation. We also use Poste's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Poste Italiane volatility.
Poste |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Poste Italiane 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 Poste Italiane at lower prices to lower their average cost per share. Similarly, when the prices of Poste Italiane's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Poste Stock
Moving against Poste Stock
| 0.85 | D7GA | NEL ASA ADR30 | PairCorr |
| 0.8 | MBI | Mitsubishi | PairCorr |
| 0.8 | LYV | Lundin Energy AB | PairCorr |
| 0.71 | DBPD | Xtrackers ShortDAX | PairCorr |
| 0.47 | OS3 | Otello ASA | PairCorr |
| 0.38 | C4X | Onxeo SA | PairCorr |
| 0.32 | HHX | HAMMONIA Schiffsholding | PairCorr |
Poste Italiane Market Sensitivity And Downside Risk
Poste Italiane's beta coefficient measures the volatility of Poste 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 Poste stock's returns against your selected market. In other words, Poste Italiane's beta of 0.067 provides an investor with an approximation of how much risk Poste Italiane stock can potentially add to one of your existing portfolios. Poste Italiane SpA has low volatility with Treynor Ratio of 2.46, Maximum Drawdown of 5.4 and kurtosis of 0.96. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Poste Italiane'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 Poste Italiane'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 Poste Italiane SpA Demand TrendCheck current 90 days Poste Italiane correlation with market (Dow Jones Industrial)Poste Beta |
Poste 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 | 0.99 |
It is essential to understand the difference between upside risk (as represented by Poste Italiane's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Poste Italiane's daily returns or price. Since the actual investment returns on holding a position in poste 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 Poste Italiane.
Poste Italiane SpA Stock Volatility Analysis
Volatility refers to the frequency at which Poste Italiane stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Poste Italiane's price changes. Investors will then calculate the volatility of Poste Italiane'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 Poste Italiane's volatility:
Historical Volatility
This type of stock volatility measures Poste Italiane's fluctuations based on previous trends. It's commonly used to predict Poste Italiane'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 Poste Italiane'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 Poste Italiane'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. Poste Italiane SpA 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.
Poste Italiane Projected Return Density Against Market
Assuming the 90 days horizon Poste Italiane has a beta of 0.067 . This suggests as returns on the market go up, Poste Italiane average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Poste Italiane SpA 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 Poste Italiane 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 Poste Italiane'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 Poste 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.
Poste Italiane SpA has an alpha of 0.1574, implying that it can generate a 0.16 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Poste Italiane 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.Poste Italiane Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Poste Italiane is 524.17. The daily returns are distributed with a variance of 0.99 and standard deviation of 0.99. The mean deviation of Poste Italiane SpA is currently at 0.74. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.16 | |
β | Beta against Dow Jones | 0.07 | |
σ | Overall volatility | 0.99 | |
Ir | Information ratio | 0.05 |
Poste Italiane Stock Return Volatility
Poste Italiane historical daily return volatility represents how much of Poste Italiane stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 0.9932% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Poste Italiane Volatility
Volatility is a rate at which the price of Poste Italiane 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 Poste Italiane may increase or decrease. In other words, similar to Poste's beta indicator, it measures the risk of Poste Italiane and helps estimate the fluctuations that may happen in a short period of time. So if prices of Poste Italiane 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.Poste Italiane SpA provides postal, logistics, and financial and insurance products and services in Italy. The Insurance Services segment offers life and non-life insurance products. POSTE ITALIANE operates under Conglomerates classification in Germany and is traded on Frankfurt Stock Exchange. It employs 130898 people.
Poste Italiane'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 Poste Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Poste Italiane's price varies over time.
3 ways to utilize Poste Italiane's volatility to invest better
Higher Poste Italiane's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Poste Italiane SpA 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. Poste Italiane SpA 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 Poste Italiane SpA investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Poste Italiane'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 Poste Italiane's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Poste Italiane Investment Opportunity
Poste Italiane SpA has a volatility of 0.99 and is 1.36 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Poste Italiane SpA is lower than 8 percent of all global equities and portfolios over the last 90 days. You can use Poste Italiane SpA to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Poste Italiane to be traded at €15.11 in 90 days.Significant diversification
The correlation between Poste Italiane SpA 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 Poste Italiane SpA and DJI in the same portfolio, assuming nothing else is changed.
Poste Italiane Additional Risk Indicators
The analysis of Poste Italiane'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 Poste Italiane's investment and either accepting that risk or mitigating it. Along with some common measures of Poste Italiane 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 | 0.1313 | |||
| Market Risk Adjusted Performance | 2.47 | |||
| Mean Deviation | 0.7372 | |||
| Semi Deviation | 0.7787 | |||
| Downside Deviation | 0.9681 | |||
| Coefficient Of Variation | 561.54 | |||
| Standard Deviation | 0.9833 |
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.
Poste Italiane 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 Poste Italiane 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. Poste Italiane'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, Poste Italiane'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 Poste Italiane SpA.
Complementary Tools for Poste Stock analysis
When running Poste Italiane's price analysis, check to measure Poste Italiane'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 Poste Italiane is operating at the current time. Most of Poste Italiane's value examination focuses on studying past and present price action to predict the probability of Poste Italiane's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Poste Italiane's price. Additionally, you may evaluate how the addition of Poste Italiane to your portfolios can decrease your overall portfolio volatility.
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